Wellington City Council
Te Pūrongo ā-Tau Annual Report

Te Pūrongo ā-Tau Annual Report 2019—2020

Kia

Whakataukī

Te Pūrongo ā-Tau Annual Report 2019—2020

Walk

Whakataukī

whakatōmuri te haere
whakamua

backwards into the

future

The kaupapa (theme) for this year’s report is based on the whakataukī, kia whakatōmuri te haere whakamua, which speaks to Māori perspectives of time, where the

with eyes

past, the present and the future are viewed as intertwined, and life as a continuous cosmic process. The past is
central to and shapes both present and future identity.

fixed on the past

I poua te kaupapa o te pūrongo o tēnei tau ki te
whakataukī nei, kia whakatōmuri te haere whakamua,
e kōrero ana mō te aronga a te Māori ki te wā, e whiri tahi
ana te wā o mua, o nāianei, o muri hoki, ā, he tukanga
mutunga kore nō tuarangi. He pū matua te onamata ki,
he hanga hoki i, te tuakiri o te inamata me te anamata.

I tētahi tau rerekē me hoki whakamuri te titiro ki ngā wero
me ngā āheinga i tūtakina e tātou, ā, me whaikaha ki te
ārahi whakamua i tō tātou tāone nui ki te arotakenga o te
Mahere Mau-roa i te 2020/2021. E kore mātou e hiahia
ki te hoki noa ki te wā i mua o te KOWHEORI-19, ki te
whakakore rānei i ō tātou wero hanganga me te aumangea
– e hiahia ana mātou ki te hanga i tētahi tāone nui pai ake
mō anamata. Mai i tēnei tirohanga, ka kawea e mātou ngā mahi o mua ki anamata hei tūāpapa kaha mō te angitu.

In an unusual year, we must reflect on the challenges
and opportunities we faced and be strong in leading
our city forward into our Long-term Plan review in
2020/21. We do not simply want to return to life before
COVID-19 or ignore our infrastructure and resilience
challenges – we want to create a better city fit for the
future. From this perspective, we will carry the past events into the future as a strong foundation for success.

Te Pūrongo ā-Tau Annual Report 2019—2020

Nau mai ki tā mātou tirohanga rāpopoto
o te tau 2019/20

Welcome

Te Pūrongo ā-Tau Annual Report 2019—2020

Ihirangi	Contents

Contents

Nau mai | Welcome	2	Section 4 — Financial Statements
Statement of Compliance	186
189	
ction 1 — Summary of our year
Mayor’s report	6
8	and Responsibility
COVID-19 Financial Impact	
195	
Chief Executive’s report	10	Statement of Comprehensive	196	

Welcome to our	Se
snapshot of the

2019/20 year

Our role	12
Our strategic direction	12

	Statement of cash flows	272	
Section 2 — Our performance in detail	26	Other disclosures	275	
1 Pārongo ā-tāone | Governance	28	Financial prudence	300	
2 Te Taiao me te Hanganga	38	Funding impact statements	308	
3 Whanaketanga ōhanga	52	Independent Auditor's Report	330	
Economic development				
4 Oranga ahurea | Cultural wellbeing	62	Appendices	334	
5 Kaupapa Pāpori me ngā Mahi a Rēhia Social and Recreation	72	Events in 2019/20
Glossary	336
338	
6 Tāone tupu ora | Urban development	84	
7 Waka | Transport	94	

Summary of our performance	13

Environment and infrastructure

Revenue and Expense
Statement of Financial Position	216
Statement of changes in equity	262

The Annual Report 2019/20 was adopted by the Council on 16 December 2020.

Council-Controlled Organisations (CCOs)	104
Detailed performance information	114

Wellington City Council is a public benefit entity for	Section 3 — Our leadership and our people	158	
financial reporting purposes. The financial statements	Our Council	160	
within the Annual Report were prepared in accordance	Our Organisation	168	

with and comply with New Zealand Generally Accepted Accounting Principles (GAAP) and comply with Public Sector Public Benefit Entity Accounting Standards (PBE accounting standards) for a Tier 1 entity. The financial statements are denominated in New Zealand dollars.
Copies of the full Annual Report 2019/20 and the summary are available at Council offices, libraries, or at wellington.govt.nz.

Our Staff	174

2	3

Te Pūrongo ā-Tau Annual Report 2019—2020

Welcome

Te Pūrongo ā-Tau Annual Report 2019—2020

Welcome

Tō tātou tāone nui
Our city

Ko wai tātou
Who we are1

Living our best Wellington life
Located at the heart of New Zealand, Wellington is the southern-most capital city in the world, and the centre of the country’s government, coffee and film industries.
Its unique landscape features bush covered hills, rivers and streams, a large natural harbour, rocky and sandy

We acknowledge our mana whenua
The Waitangi Tribunal found that at 1840 the iwi groups that had “take raupatu” (right of conquest) over the wider area were: Te Atiawa, Ngāti Ruanui, Taranaki, Ngāti Tama and Ngāti Toa. The Tribunal also found that these iwi each had their own ahi kā (rights over particular areas):

210,400
Population

51.4%
of population under 35

14.9%
Over 60

coastlines and a growing population of wildlife. It is the pride and taonga of many Wellingtonians and is actively protected, nurtured and restored.
Through centuries of settlement by Māori and then

Te Atiawa at Te Whanganui-a-Tara and parts of the south-west coast
Taranaki and Ngāti Ruanui at Te Aro

10.1%	33.4%

$110,4462

Pākehā, the area has quickly developed into a creative and vibrant city.

Ngāti Tama at Kaiwharawhara and environs, and parts of the south-west coast
Ngāti Toa at parts of the south-west coast

of Māori descent

of Wellingtonians born overseas

Average household income

These tribes are Wellington’s iwi mana whenua and we work with their mandated iwi entities, the Port Nicholson Block Settlement Trust and Te Rūnanga o Toa Rangatira.

Ō tātou wāhi noho
Where we live

2,207 3
Sunshine hours a year

98.9km
of coastline

355km
of walking and biking tracks

1,8004
hospitality businesses

202m2 5
of open space per person

$825,0006
Median house price

1 Figures in this section from Profile ID and 2018 and 2013 census
2 Regional figure, StatsNZ household income as at June 2019
3 Niwa Annual Climate Summary Figure 2019

4 Coastline, tracks, playgrounds, reserve and hospitality businesses data from WCC Sources
5 WCC 4251 total hectares divided by 2019 population 210,400
6 REINZ Monthly Property Report 14 July 2020

5

Summary of

Section one

our year

 	 	 	 	 	 	 	 	 	 	

I tēnei wāhanga
"Kei tēnei wāhanga he tirohanga whānui te tau nā te Koromatua me te Tumu Whakarae, te tirohanga whānui ki tō mātou pakihi matua, he whakarāpopoto hoki i ā mātou whakatutukinga i tēnei tau.".

6

In this section
This section includes an overview of the year from the Mayor and Chief Executive, the highlights and challenges, our Council vision, overview of our core business, and summaries of our performance this year.

7

 	
Te Pūrongo ā-Tau Annual Report 2019—2020	Summary of our year	Te Pūrongo ā-Tau Annual Report 2019—2020	Summary of our year

E whakarite ana i a
Te Whanganui-a-Tara mō tētahi anamata kaha

Preparing Wellington for a strong future

Nau mai ki te tirohanga iti o te tau 2019/20 – kātahi rawa te tau ko tērā. I tū ngā pōtitanga kaunihera ā-rohe, i whakanuia te 150tau o te Māra Huaota, he raumati puhake i ngā taiopenga pēnei i ngā whakataetae pūrua a ngā Pōtae Pango me ngā Rarauwhe Mā, me te kōnehete a Queen rāua ko Adam Lambert, engari i te marama o
Poutūterangi, tērā te wero nui a te KOWHEORI-19 ki te ao, tē matakitea. Ko te āhua nei nō uki rawa tēnei āhuatanga.
Tō tātou hapori pakari
I te wā i whakaputaina e te Kāwanatanga te rāhui ā-motu, i tere te Kaunihera ki te whakawhanake i tētahi Mahere Urupare Urutā me te Whakaora hei tautoko i ngā kainoho me ngā pakihi o Te Whanganui-a-Tara. I uru hoki ngā kaupapa pēnei i te whakaiti i ngā wā mō ngā utunga ki ngā kaiwhakarato, te whakarato i te āheinga ki te whakatārewa i ngā utu rēti o te hauwhā tuawhā 2019/20 mō te ono marama me te kore whai hāmene, me te whakaiti i ngā utu raihana waipiro me te kai ki te tautoko i te rāngai manaaki.
I manawanui te Kaunihera ki te pakari o ngā kainoho o Te Whanganui-a-Tara i te wā, i muri hoki o te rāhui. Kia manawanui ai te iwi, me te tautoko anō i a rātou ki te hāereere, i tukuna e mātou ngā kuhunga kore utu ki te huhua o ō mātou whare, pēnei i te Whare
Kararehe me Zealandia. E mōhio ana ahau i pārekareka ēnei whai wāhitanga ki te mano tini, ā, he koanga ngākau te kite atu i te tāone nui e ora mai ana anō.
I te tau 2020/21 ka arotahi tonu mātou ki te whakaoranga me te hapori hoki kia kapakapa kaha anō ai te manawa o tō tātou tāone nui. Hei tauira, e mahi ana a WellingtonNZ i runga i tētahi hōtaka taiopenga e whai ana ki te
tautoko i ngā rāngai hokohoko, ratonga hoki.
Te tau kua mahue ake nei
Ahakoa he uaua te tau, ā, he pānga nui tō te KOWHEORI-19, tērā anō ōna miramiratanga, pēnei i:
te whakatuwheratanga o te Nōhanga Museum i whakapakaritia, i whakahoutia hoki i te Basin Reserve;
te tīmatanga o te hanganga o te Pokapū Whakaaturanga o Tākina;
te kōkiri nui tonu i ngā ara pahikara huri noa i te takutai mai i Whanga o Oriental ki te Taunga Rererangi o Te Whanganui-a-Tara; me

te whakatuwheratanga o ētahi whare pukapuka hou e toru: Te Pokapū Hapori o Waitohi i Johnsonville, He Matapihi i Te Puna Mātauranga o Aotearoa me te pokapū tohatoha o Te Pātaka i Johnsonville.
I whakatuwherahia hoki e mātou te Whare Pukapuka o Te Awe i te Hōngongoi 2020.
I te Hakihea me te Kohitātea i tatū ētahi mūhoretanga paipa waipara e rua, haurongo nui hoki, i whakararu i ngā pakihi me ngā kainoho me te ara anō o ngā pātai mō te āhua me
te kaha o tō tātou pūnaha wai. He whakahirahira tonu ngā mahi a Wellington Water ki te whakatikatika i ēnei. I tere tonu tā mātou haumi i ētahi pūtea ki ngā aromatawai paipa me ngā tira mātai. I whakaritea e au tētahi rōpū mahi ki te pākiki i ngā raru e pā ana ki ngā take wai i Te Whanganui-a- Tara me te tautohu i ngā kaupapa hei whakatikatika i ēnei mā roto i te tukanga mahere mau-roa. Ko ngā hua o tēnei ka whakaaturia ki te Kaunihera hei te roanga o 2020.
Ngā mahi whakamahere mō anamata
Hei te tau e tū mai nei e arotakehia ana e mātou ētahi o ngā pepa matua a te Kaunihera. Tuatahi ko te Mahere
ā-Rohe, e whakatau nei i ngā ture mō te whanaketanga o te tāone nui. Mā te arotake nei e whakarite i te āhei o te mahere ki te tautoko i tō mātou moemoeā mō anamata. Tuarua, ka arotakehia tā mātou Mahere Mau-roa. He take nui tēnei arotake i te mea ka whakaarotia ngā pānga pūtea mai i ngā wero i hua ake i te 2020. E anga atu ana a Te Whanganui-a-Tara ki te whakarite i tētahi mahere pūtea tino whakatara rawa. He waiwai te whakawhiti
kōrero ki te hapori mō ō moemoeā me ō wawata i a mātou e matapae ana i ngā mahere mō tō tātou anamata.

Koromatua Andy Foster

Welcome to the snapshot of the 2019/20 year – and what a year it has been. We had the local body elections, the Botanic Garden’s 150th anniversary, a full summer
of events including Black Caps and White Ferns double headers and the Queen and Adam Lambert concert, but in March, COVID-19 changed the world in a way no one predicted. That seems a very long time ago.
Our resilient community
When the Government announced the lockdown, Council acted quickly to develop a Pandemic Response and Recovery Plan to support Wellington residents and businesses. This included initiatives like reducing timeframes for payments to suppliers, providing the ability to defer 2019/20 fourth quarter rates for six months without penalty, and reducing
alcohol and food licence fees to support the hospitality sector.
The Council was heartened that Wellingtonians were resilient during and after lockdown. To ensure people were confident and supported to get out and about we offered free entry
to many of our facilities, including the Zoo and Zealandia. I know thousands enjoyed taking up these opportunities and it was a joy to watch the city come alive again.
In 2020/21, we will continue to focus on recovery and community to get the heart of our city pumping strongly again. For example, WellingtonNZ is working on an events programme aimed at supporting the retail and service sectors.
The year that was
While the year was challenging and significantly impacted by COVID-19, it was not without its highlights, including:
opening the strengthened and refurbished Museum Stand at Basin Reserve;
beginning the construction of Tākina Convention & Exhibition Centre;
making significant progress on cycleways around the coast from Oriental Bay to Wellington Airport; and
opening three new library facilities: Waitohi Community Hub in Johnsonville, He Matapihi Library in the National Library and Te Pātaka distribution centre in Johnsonville. We also opened Te Awe Library in July 2020.
In December and January we were faced with two high- profile wastewater pipe failures that created disruption for businesses and residents and raised questions about

the condition and performance of our water network. Wellington Water did an extraordinary job in repairing these. We also immediately invested in the funding for condition assessment and roving crews. I convened a Taskforce to inquire into the problems relating to water issues in Wellington and identify initiatives to address these through the long-term planning process. The outcome
of this will be presented to Council later in 2020.
Future planning
In the next year we are reviewing some of our key Council documents. Firstly, the District Plan,which sets the rules for the city’s development. This review will ensure the plan is able to support our vision for the future. Secondly, we will be reviewing our Long-term Plan. This review will be
significant as it will consider how our budget will be impacted by the challenges that we have faced this year. This will
be the most challenging budget our city has ever faced.
The community will be able to engage with us and pass on feedback for both reviews, and I encourage all of you to do so. These documents will set out our city’s future and we want to make sure we have heard from you on your dreams and aspirations for our capital.

Mayor
Andy Foster

Te Pūrongo ā-Tau Annual Report 2019—2020

Summary of our year

Te Pūrongo ā-Tau Annual Report 2019—2020

Summary of our year

 	

E pūmau ana kia pai ake te mahi tahi

Committed to working better together

I uru mai au ki te tūranga o te Tumu Whakarae i te Poutūterangi 2020, e toru wiki noa i mua o te rāhuitanga o te tāone nui hei urupare ki te KOWHEORI-19. He wā ngākaurua te hauwhā whakamutunga o tēnei tau engari e whakahīhī ana au i te aranga mai o ngā kainoho o Te Whanganui-a-Tara me te Kaunihera ki te hiki i te mānuka.
He take nui hoki i te wā e noho ana te tāone nui i ō rātou kāinga, i whakarite mātou kia haere tonu ngā ratonga waiwai a te Kaunihera. Tāpiri ki tēnei ko te tiaki i ngā tiriti kia noho tuwhera, te whakahaere i ngā kawenga para, ngā ratonga urupā me te whakarato tautoko ki tō tātou hapori.
I roto i te rua rā o te nekehanga ki te Pae Mataara 4, i whakawhiti te nuinga o ā mātou kaimahi tari ki te mahi mai i te kāinga, i katia ngā whare mahi, i
whakawhiti kōrero ki ngā kainoho, ā, i whāia ngā ara kia wātea tonu ai ngā kaimahi ratonga waiwai me ngā kaikirimana ki te mahi haumaru tonu i roto i te hapori.
I taua wā hoki i tata tā mātou mahi tahi ki ētahi atu tari puta noa i te rohe ki te whakarite kia haumaru tonu a Te Whanganui-a-Tara me te tiaki hoki i ngā kirirarau e tino whakaraerae ana.
I te taha o ngā hoa hapori, i urupare wawe ngā kaimahi Kaunihera ki te tautoko i te hunga e tino matea ana. Ko ētahi o ngā kaupapa i arahina e tō mātou tira, ko ngā kaupapa pēnei i te whakarite kia wātea ngā ratonga kai ohotata i te roanga o te rāhuitanga me te whakawhanake i tētahi mahere pāhekoheko tuihono e whakaatu ana me pēhea te āhei atu ki ngā ratonga waiwai, hapori hoki.
Ngā Pūtea
Arā anō hoki te pānga o te KOWHEORI-19, kaua ki ō tātou hapori me ngā kaimahi engari ki ngā pūtea hoki. I heke ngā whiwhinga pūtea i waho atu o ngā utu rēti i te katinga o ngā whare, i whakatārewatia ētahi atu utunga, ā, i heke hoki te monihua i hua mai i a Wellington Airport Ltd. Ahakoa he iti ake te ngarohanga pūtea mai i tērā i matapaetia nā te wawe o te whitinga ki te Pae Mataara 1, he pānga nui tonu tō te
$13.6m. I runga i te mōhio, tūturu, he kōtuku rerenga tahi tēnei, i mino pūtea mātou e kawa ai tēnei ngarohanga pūtea.
I whakapikihia hoki te nama kia pai ai te tautoko i te
$10.1m o ētahi atu āhuatanga tē maheretia, arā ngā mahi whakatikatika i te ana waipara o Mt Albert. E pūmau ana mātou ki te penapena pūtea hei tauaro i te pānga o ēnei, me te taurite anō i ngā pikinga utu o te tuku i ngā ratonga o te

wā nei, me te urupare ki ngā take rū, take noho pakari hoki. Ka whakapātaritaritia ā-pūtea mātou ā ngā tau e whai ake ana i te wā e mahi ana mō te painga o tō tātou tāone nui, engari ko te hoa haere o tēnei ko te āheinga kia eke panuku mātou i roto i ā mātou mahi me te arotahi ki ngā āhuatanga e whai take ana ki ngā kainoho o Te Whanganui-a-Tara.
E pūmau ana te Kaunihera o Te Whanganui-a-Tara ki te mahi pai ake i te taha o tō mātou hapori ki te tuku i ngā putanga pai, me ngā ratonga kounga hoki ki ā mātou kiritaki. Ko te tikanga o tēnei ko te tuku tonu i ngā wahanga o ā mātou mahi e noho ana i te manawa tonu o ngā mahi o ia rā o tō tātou tāone nui – te tiaki i ngā puna kaukau, ngā whare pukapuka me ētahi atu whare hapori kia tuwhera tonu; te tiaki i ngā whakahaerenga para, huarahi, tūnga motukā; me ngā wāhanga o ā mātou mahi e muramura ai a Te Whanganui- a-Tara, e noho hei wāhi taurikura ki te noho, tae atu ki ngā taiopenga, ngā wāhi taiao me ngā toi o te tāone nui.
Anō te mea nui, he nui ngā mahi hei whakatutuki i a mātou e anga atu ana ki te waihanga i te anamata o tō tātou tāone nui me te whakamahere mō ngā pānga o te tipunga o te taupori, te tawhito rawa o ngā hanganga me te panoni huarere. Ka noho tēnei hei aronga nui mōku i taku tūranga hei Tumu Whakarae me taku tira hoki i Te Kaunihera o Te Whanganui-a-Tara i a mātou e mahi tahi ana mō te painga o Te Whanganui-a-Tara.

Tuma Whakarae Barbara McKerrow

I stepped into the role of Chief Executive in March 2020, just three weeks before the city went into lockdown in response to COVID-19. The fourth quarter of this year was a time of uncertainty for all of us, but I am incredibly proud of the way both Wellingtonians and the Council team have risen to the challenge.
It was important that while the city stayed at home, we ensured essential Council services continued to operate. This included keeping our streets open and safe, managing waste, operating cemetery services, and providing support to our community.
Within two days of the move to Alert Level 4, we had transitioned the majority of our office-based staff to working from home, closed facilities, communicated with residents, and taken steps to ensure essential services staff and contractors were able to continue to work safely in the community.
Throughout this time, we collaborated closely with other agencies across the region to ensure we kept Wellington safe and looked after our most vulnerable citizens.
Alongside community partners, Council staff responded quickly to step up support for those in need. Some of the initiatives led by our team included helping ensure emergency food supplies were available throughout lockdown and developing an interactive online map
showing how to access essential and community services.
Finances
COVID-19 not only impacted our communities and staff but also our finances. Non-rates revenues reduced as facilities closed, other fees and user charges were suspended, and there was a reduced Wellington International Airport Ltd dividend. While the loss in revenue was less than expected, because of the quick transition to Alert Level 1, $13.6m
is still a significant impact. Recognising this was indeed a rainy day, we borrowed money to cover this lost revenue.
Debt was also raised to fund $10.1m in other unplanned, emergency operational work to repair the Mt Albert wastewater tunnel. We are committed to cost savings to offset these impacts, while also balancing the increasing costs of delivering existing services and responding to earthquake and resilience issues. The next few years
will challenge us financially as we work to deliver for our city, but with this comes the opportunity to make

sure we are performing at the top of our game and focussing on the things that matter to Wellingtonians.
Wellington City Council is committed to working better together with our community to deliver great outcomes and excellent services to our customers. This means continuing to deliver those elements of our work that sit at the heart of our city’s day-to-day operations
– keeping our pools, libraries and other community facilities running; maintaining waste management, traffic management and car parking; and the aspects of our work that make Wellington a vibrant and special place
to live including events, natural spaces and city arts.
Just as importantly, there is much work to do as we look ahead to shaping our city’s future and planning for the impacts of a growing population, aging infrastructure and climate change. This will be a focus for me in my role as Chief Executive and my team at Wellington City Council as we work together for Wellington’s future.

Nāku iti noa, nā
Chief Executive Barbara McKerrow

Te Pūrongo ā-Tau Annual Report 2019—2020

Tā mātou

Summary of our year	Te Pūrongo ā-Tau Annual Report 2019—2020	Summary of our year

Tō mātou	Whakarāpopoto o

tūranga
Our role

anga rautaki Our strategic direction

ā mātou mahi Summary of our performance

Our role is to support the current and future needs and advance the aspirations of our communities, the city and the region.
The Council delivers an extensive range of services to achieve this – from parks and cemeteries to parking and pools, from water supply and waste management to cycleways and road safety. We also have projects and initiatives that actively support the city’s economic growth and cultural development.
We are also responsible for controlling and regulating activities such as building, land use, noise, food preparation, liquor sales, and ownership of dogs and other animals.
The Local Government Act 2002 sets our statutory role as being:
to enable democratic local decision-making and action by, and on behalf of, the people of Wellington
to promote the social, economic, environmental, and cultural wellbeing of the people of Wellington, in the present and for the future.

Our role is to support the current and future needs and advance the aspirations of our communities, the city and the region.

In 2012, the Council adopted its ‘Towards 2040: Smart Capital’ vision: A compact, smart, inclusive and resilient capital where it is easy to live,
work and play safely and sustainably.
Towards 2040: Smart Capital outlines Wellington’s strengths and what we will work on to help achieve economic growth, greater success and an improved quality of life for all Wellingtonians.
Towards 2040 also reflects a set of values that strengthens the city’s special character and identifies four strategic goals (outcomes) for the city:
People-centred – a city that is healthy, vibrant, affordable, accessible and resilient, with a strong sense of identity and place
An eco-city – a city where natural resources are proactively protected, where environmental challenges are addressed and the transition to becoming a low-carbon city is managed
Connected – a city with easy access to regional, national and global networks that allows people and goods to move freely, and world-class infrastructure that enables people to connect with each other and their communities
Dynamic central city – a place of creativity, exploration and innovation that offers the lifestyle, entertainment options and amenities of a much bigger city and
where the city centre drives the regional economy.
We actively monitor several outcome indicator trends alongside our Council KPIs that help us understand how the city is changing and how we are going towards achieving these goals. This year, the monitoring of these trends and the results have been impacted by COVID-19, with details in Section 2: Our performance in detail, pg 26 to 157.
The goals guide our seven strategic activity areas, which are presented in separate chapters in this Annual Report. They highlight the variety of activities that we deliver and the progress we are making towards the outcomes.

Introduction
During the year, we continued to deliver our services well, however there were some significant challenges that impacted how we operated, including COVID-19.
While we progressed several citywide capital works initiatives during the year, costing more than $213m, sustained delivery of the capital works programme was challenging with only part of the impact due to COVID-19. At end of the year, we had a 20 percent under delivery on our Council capital programme covering several activity areas (see pg 22 for details).
Material issues
To perform effectively as a Council, we need to understand Wellington. Not just our infrastructure, services and facilities, but also the changes the city and communities experience and how these and the associated challenges will shape the future.
This year’s report theme emphasises the need to learn from the challenges we faced this year to ensure our city is resilient going forward. The two challenges outlined below had significant impacts on the Council’s performance during the year.
The COVID-19 pandemic
On 25 March, New Zealand went into lockdown for over a month to stop the spread of COVID-19. This had an immediate and adverse impact on the city’s development and social, environmental, economic, and cultural wellbeing. The lockdown
closed facilities, disrupted the delivery of services to residents, and delayed significant capital projects.
The Council quickly developed a Pandemic Response and Recovery Plan to support Wellington residents and businesses which included direct financial support, provision of wellbeing services, and economic recovery and support initiatives. The plan we implemented
can be viewed online at wcc.govt.nz/covid-19

The pandemic affected the operation of all our 400 services and their KPIs in different ways. We stopped some services, operated others in a reduced capacity, and introduced new services to support our community,
including the following changes during Level 4 lockdown:

Public toilets closed, except those used by the street community
Most facilities closed, including playgrounds, pools, fenced dog parks, the golf course, Makara Mountain Bike Park, Zoo and ZEALANDIA
Kerbside rubbish collection continued, but recycling was stopped
Southern Landfill closed to public, open to commercial customers
Work on capital projects stopped
Online library membership opened to non-members
38 self-contained units opened to support homeless population
Helped create the Rippl app for contact tracing
#LoveLocal and We Wellington campaigns to assist local economy.

The COVID-19 lockdown had a significant impact on the Council’s non-rates revenue for the year as a result of lost revenue from facilities being closed;
and additional spending on initiatives agreed by the Council to ease the impact of lockdown on the city such as reducing fees for alcohol and food licence fees and providing a rebate for pavement licence
holders. The overall impact was a $13.6m revenue loss. More detail on the financial impact is on page 195.
The pandemic also impacted our non-financial performance with a 17 percent decrease in the measures that were achieved (within 10 percent of target) or exceeded by 10 percent when compared to last year.
More details on the impact of the pandemic is included in Section 2 of this report.

 	
Te Pūrongo ā-Tau Annual Report 2019—2020	Summary of our year	Te Pūrongo ā-Tau Annual Report 2019—2020	Summary of our year

Three waters network
No city can function effectively without a reliable and fully functioning three waters network, which is made up of drinking water, stormwater and wastewater. Our water infrastructure and services are managed by Wellington Water Limited, a Council-controlled organisation co- owned by Councils in the Greater Wellington region.
Wellington Water Ltd has its own board of directors.
In 2019/20, the city experienced some large- scale network failures that created disruption for communities and businesses, and raised questions
from the public, the media and Councillors about the condition of our network and how it is being managed.
On 20 February, Mayor Andy Foster announced the establishment of a Mayoral Taskforce to inquire into the problems with our water network and how we can address them. The Mayoral Taskforce reported back to Council in late 2020.
The failures in the three waters network have impacted the performance in our Environment and Infrastructure activity area, see from page 44.
Our Performance
Our key performance measures (KPI) and their targets are how we track and assess the delivery of Council services.
Of Council’s 227 key performance indicators with an available result:

84 (37 percent) did not meet target by greater than 10 percent;
104 (46 percent) were achieved within 10 percent of target +/-, and
39 (17 percent) exceeded target by greater than 10 percent.

(within 10 percent of target) or exceeded by 10	Achieved	50%	
percent. Last year the result was 82 percent.	Not met	30%	
A common performance measure used by Council is visitor This includes facilities like swimming pools, libraries,
were impacted due to COVID-19 lockdown.	Exceeded	20%	

The COVID-19 did impact the overall result. This year 63 percent of KPIs were achieved

Leading into the pandemic, the performance of the Council was broadly consistent quarter on quarter with previous years. However, some KPIs were immediately impacted meaning the performance at Q3 and end of year decreased.

In quarter three: 66 percent of KPIs were achieved or exceeded;
In quarter two: 77 percent of KPIs were achieved or exceeded; and
In quarter one: 79 percent of KPIs were achieved or exceeded.

Community outcomes
In addition to our key performance indicators, we also track progress towards our 154 community outcome indicators.
Outcome indicators do not measure Council services, but instead track how the city is performing over time towards our goals of being an eco, people-centred, dynamic and connected city, and therefore do not have targets.
By the end of the financial year, 20 percent (31 out of 154) of those indicators were trending in the desired direction, with 11 percent (17 out of 154) presenting negative trends. There were no conclusive trends for the
remaining 69 percent (106 out of 154) outcome indicators, which is a larger group than last year (65 percent).
More information on our 2019/20 performance measure results and outcomes for each activity area are included in the following pages and in Section 2: Our performance in detail on page 26 to 157. It also outlines key variance commentary for results.

Summary of what we do
Most of the work we do, our budgets and the services we provide are in seven activity areas that represent how we work.
In the Our performance in detail (Statement of Services Provision) section of this report we outline each activity area, including an overview of the highlights, challenges, performance information and what the activities cost. This 2019/20 Annual Report is a report against year two of Our 10-Year Plan 2018-2028.
The next section provides an overview of our performance by activity area.
Governance
We inform residents and engage with them about the city and the issues it faces, manage local elections, and work with mana whenua to make decisions for the city and its people.
What we did
Held local Council elections in October 2019
Moved all decisions and community engagement online during COVID-19 lockdown
Agreed a Pandemic Response & Recovery Plan to support the city
Implemented Archives Online to enable digital access to our information
Work continued with Te Tauihu revitalisation through annual events and increasing bilingual signage in facilities.

Performance results

Achieved	50%

Not met	43%

Exceeded	7%

Environment and Infrastructure
We manage waste reduction and disposal, fund conservation attractions, and look after parks, reserves, tracks and walkways. Through Wellington Water Ltd, we provide water, stormwater and wastewater services.
What we did
Water disruptions and wastewater network failures occurred in Dixon Street and in the Mt Albert tunnel. These were repaired and resolved during the year
Upgraded Makara Peak Mountain Bike main entrance and carpark
Made entry to the Zoo and ZEALANDIA free for a time to encourage people out into the city after lockdown.

Performance results

Achieved	46%

Not met	26%

Exceeded	29%

Economic Development
We attract and support business activity, market Wellington to tourists from New Zealand and overseas, and own and operate performance venues and conference facilities.
What we did
Construction of Tākina Convention & Exhibition Centre and St James Theatre strengthening progressed during the year. There was a delay during lockdown and both projects restarted in Level 3.
Provided commercial rates deferral for the fourth quarter, a $7.6m recovery fund, a rebate on some fees to support the hospitality sector, and launched #LoveLocal to support local businesses.

Performance results

numbers or utilisation rates of our facilities.

sports-fields and recreation centres. These measures

Te Pūrongo ā-Tau Annual Report 2019—2020	Summary of our year

Te Pūrongo ā-Tau Annual Report 2019—2020

Summary of our year

Cultural Wellbeing
We fund city events and festivals. We also support attractions, galleries and museums, as well as community art and cultural activities.
What we did
Had a full summer of events, but some events in the last months of the year were cancelled or postponed
Other events like Matariki were reimagined

Urban Development
We manage urban planning and design, control building activity and land use, and assess risks from earthquake- prone buildings. We also develop and enhance public spaces.
What we did
Progressed the draft Spatial Plan to draft form, but formal consultation was delayed until August

Ā mātou whakapaunga pūtea
Our finances
-$27.5m	$7.14

because of COVID-19 restrictions. The final event (held in July 2020) included the best of physical and online activities.

Performance results

Achieved	29%

2020 due to COVID-19
Grey Street Pocket Park was upgraded to include new paving, seating, trees, and improved lighting.

Performance results

Achieved	56%

Underlying result for 2019/20
The underlying deficit excludes non-funded or separately funded items, capital funding, and ring-fenced

Not met	57%		Not met	28%		
Exceeded	14%		Exceeded	17%	 		 		

activities. The above result includes $23.7m of operating expenditure ($10.1m related to the Mt Albert wastewater tunnel and $13.6m of revenue losses associated with COVID-19), which the Council has chosen to debt fund.

Operational cost of Council services per resident per day
Our services include managing and maintaining facilities like libraries and sportsfields, keeping our roads and footpaths at a high standard, and supporting arts, cultural and sporting events. This
figure excludes costs related to asset impairments.

Social and Recreation
We provide community and social facilities, including

Transport
We provide and maintain roads, bridges, tunnels,

$548.4m	$213.1m

libraries, community centres, swimming pools, sportsfields and playgrounds. We also provide social housing, work to reduce homelessness and begging, and improve city safety.
What we did
Approved additional grant funding for

walls, cycleways, and pedestrian paths. We provide bus shelters, bus stops and bus lanes, and signs and traffic signals. We also provide parking and enforcement services.
What we did
Implemented a lower 30kmh speed limit

Cost of running the city
Our total operating expenses for the year were $548.4m. This figure excludes $10.2m related to asset impairments, largely related to the Te Ngākau Civic Precinct.

Capital spend
We spent $213.1m on building new assets for the city. This was lower than our planned $267.8m as a result of COVID-19 delays and the re-phasing of some projects over a longer period of time.

community and social service organisations
Worked with community partners to ensure everyone was homed during the lockdown
Completed seismic strengthening and refurbishment of the Museum Stand at the Basin Reserve

on South Coast and Miramar Peninsula roads during the lockdown because of an increase in pedestrians and cyclists
Arranged the Courtenay Place weekend closure to traffic to support local bars and restaurants

$647.4m	$7.8b

Opened Waitohi Community Hub in December 2019. It includes Keith Spry Pool, Johnsonville Library, Waitohi Kindergarten, Common Ground Café, and Johnsonville Community Centre.

Performance results

Achieved	39% Not met	45%
Exceeded	16%

Progressed business cases for LGWM and agreed a new Relationship and Funding Agreement
for the detailed investigation phase
Completed the earthquake strengthening of the Seatoun Tunnel and retaining
wall on the Strathmore side.

Performance results

Achieved	60% Not met	40%
Exceeded	0%

Net borrowing position
This is an increase of $102.7m from last year, which equates to $3,077 per person in the city. We use borrowing to spread the cost of new facilities or infrastructure over the multiple generations that will benefit from that facility or infrastructure.

$1:$1
Debt servicing cost to investment returns
For every $1 the Council incurs on paying interest on debt, it receives $1 from its investments. Investment revenue was down on budget due to the impact of COVID-19.

of assets
The Council provides several services to the city through infrastructure networks and facilities. These have been built up over many generations and equate to about $37,000 net worth of value for every person in the city.

AA
Credit rating
The Council is in good financial health – it has an AA credit rating with Standard & Poor’s.

16	17

Overview	Our underlying operating result

For the financial year Council has achieved an underlying deficit of $27.5m.
The operating surplus of $15.1m includes $10.2m of asset impairments, largely related to the Te Ngākau Civic Precinct buildings, as well as lower revenue due to COVID-19. This was offset by insurance proceeds recognised of $33.0m related to the Civic Administration Building (CAB). Our financial position
remains healthy. Council debt is within our borrowing policy and we have investments that provide returns equal to our debt servicing costs. Accordingly, we have maintained our AA credit rating with Standard
& Poor’s, the highest for a public sector entity.
Key influences on our overall financial performance and position were:

recognition of insurance proceeds related to CAB of $33.0m;
the revaluation of investment properties, which increased the value of our assets by $7.6m;
impairments of Property, Plant and Equipment including Te Ngākau Civic Precinct buildings, totalling $10.2m; and
the impact of the COVID-19 pandemic resulting in loss of revenue totalling $13.6m.

The underlying operating result provides a comparison with the rates requirement we budgeted for in our Annual Plan to achieve a balanced
budget. It shows how closely our annual revenue matches how much we spend in any given year.
A balanced budget helps ensure that we are not passing the costs of running the city today onto future generations and imposing future costs on current generations. On the other hand, we also need to ensure that the current generation pays its fair share and the Council does not pass on current costs to future generations. Therefore, our goal is to have an underlying surplus or deficit close to zero.
This year we got very close to a breakeven result, with an underlying deficit of $3.8m, within 0.7 percent of our planned balanced budget.
To get from net surplus/(deficit) to the underlying result, the following are excluded:

revenue received for capital items, for example, funding received from NZTA for roading;
non-funded transactions – either where, through the Annual Plan, it was deemed appropriate
that future ratepayers shared the costs incurred in a particular year, or where another organisation was liable for the funding;
separately funded items where funding was through other mechanisms;
ring-fenced activities for housing and waste minimisation;
insurance proceeds related to CAB; and
items that Council decided to debt fund during the year. In 2019/20 this includes the Mt Albert wastewater tunnel repair and the loss of revenue associated with COVID-19.

These items are excluded because they generally don’t affect rates and were excluded from our Annual Plan balanced budget calculation. Table 1 summarises the capital and non-funded adjustments made to the net surplus/(deficit) to arrive at the underlying result.

Table 1: Summary of the underlying result ($m)

Underlying result	Actual	Budget	Variance	
Reported net surplus/(deficit)	15.1	(8.5)	23.6	
Add items or budgeted differences not required to be rates funded	19.6	12.7	6.9	
Exclude government funding for capital projects	(31.3)	(33.7)	2.4	
Items separately funded	(9.2)	(9.2)	0.0	
Ring-fenced activities	2.5	26.7	(24.2)	
Insurance proceeds	(33.0)	0.0	(33.0)	
Other adjustments	8.8	12	(3.2)	
Underlying surplus/(deficit)	(27.5)	0.0	(27.5)	
Debt funded items from 2019/20:				
– Mount Albert opex spend	10.1	0.0	10.1	
– COVID-19 revenue loss	13.6	0.0	13.6	
Remaining underlying surplus/(deficit	(3.8)	0.0	(3.8)	

Figure 1: Net surplus/(deficit) vs underlying result over the past 5 years ($m)

6.1

34.1

35

10.6

31.7

1.5

-0.6

-27.5

-23.9

15.1

32.2

30

25

20

15

10

5

0

-5

-10

-15

-20

-25

Net Surplus/(Deficit) Underlying Surplus/(Deficit)

Refer to Table 1 for explanation of movement from reported net surplus/ (deficit) to underlying surplus/(deficit). Zero on the Figure 1 graph represents a balanced budget. For 2019/20 we achieved an underlying deficit of $3.8m, once one-off debt funded impacts are removed, which is less than
0.7 percent of operating expenditure and reflects the careful stewardship of revenue and expenditure against budget.

-30
2015/2016	2016/2017	2017/2018	2018/2019	2019/2020

Summary of revenue

Summary of operating expenditure

Figure 2 below shows that rates are our main source of funding (56 percent of $573.7m) with revenue from operating activities (including user fees) the next largest source (26 percent). We also receive revenue from other external sources (mainly government) to
fund capital expenditure, and revenue from interest and dividends. In 2019/20 there is also $33.0m of insurance proceeds within Other Revenue related to CAB.

Figure 2: Overall sources of revenue for the past 3 years ($m)

0

0

0

Figure 3: Sources of Council’s rates revenue or the year ($m, percent)

14%

4%

35%

20%

27 %

General and targeted rates–Base Sector
$110.7

General and targets rates–Commercial, industrial and business sector $87.9
Sewerage and stormwater $63.8

Water (including water by meter) $45.8

Downtown and other targeted rates
$13.8

Figure 3 shows the sources of the Council’s rates revenue for the year. The majority of the Council’s $322.0m of rates revenue received during the year was from general rates.

Figure 4 summarises the difference between the actual and budgeted net expenditure for each strategy area. It shows how the Council has prioritised its spending to support the operational and strategic direction set in the Annual Plan. Net expenditure is calculated by offsetting activity expenditure with user charges and other direct activity income. This is the amount that is funded by rates and other corporate revenue such as dividends and rental income.
Details of the financial performance against budget for each activity can be found in the “Our performance in detail” section on pages 26 to 156.

Figure 4: Difference between actual and budgeted net expenditure ($m)

Governance

Environment and infrastructure
Economic Development
Cultural Wellbeing
Social and Recreation
Urban Development
Transport

0	50	100	150	200

0

0

0

0

0
Rates

2018

2019

2020

External sources

Investments   Operating
activities

Other revenue

Other sources were sewerage and stormwater targeted rates, with the freshwater provision making up most of the balance.

In 2019/20, the Council received higher revenues than budget, major variances included:
recognition of insurance proceeds related to CAB not in the budget ($33.0m)
vested assets revenue not in the budget ($7.6m) Some areas were lower than budget:
dividends from our investment in Wellington International Airport Ltd ($2.5m)
lower than budgeted revenue from COVID-19 lockdown and requirements around limiting numbers and social distancing at Council venues under Alert Level 2 ($13.6m)

Table 2: Gross operational expenditure by activity area ($000)

Actual

Budget

2017/18

2018/19

2019/20

2019/20

Variance

	Actual	Actual	Actual	Budget	to budget	
Governance	17,519	17,982	19,776	19,901	125	
Environment and Infrastructure	169,253	180,748	198,522	182,721	(15,801)	
Economic development	37,051	34,954	31,206	38,108	6,902	
Cultural wellbeing	21,256	23,268	22,478	22,595	117	
Social and recreation	115,358	134,717	126,047	144,337	18,290	
Urban development	29,402	30,709	36,531	34,069	(2,462)	
Transport	69,480	74,559	79,702	87,128	7,426	
Total strategic areas	459,319	496,937	514,262	528,859	14,597	
Other Council activities	43,927	86,831	44,312	28,171	(16,141)	
Grand total full Council	503,246	583,768	558,574	557,030	(1,544)	

Figures in brackets ( ) equals negative variance to budget or overspend.

Summary of capital expenditure

We have a comprehensive renewal and upgrade programme for our assets and have completed
$213.1m of capital expenditure during the 2019/20 year. This equates to 89 percent of the annual budget or 80 percent once budgets brought forward from prior years and other adjustments are included. There were several capital projects that were delayed due

Project	$m	Comments	
Earthquake Risk Mitigation	12.9	Under spending due to the earthquake strengthening of the St James Theatre and	
		the Town Hall being behind (partially due to the impacts of COVID-19).	
Transport projects	9.5	Under budget due to delays on road surface renewal work and timing of other large	
		projects (Bus Priority Planning - linked to LGWM, Ngaio Gorge and Wadestown	
		route resilience). The cessation of work through the COVID-19 lockdown, other	
		than safety related, caused significant underspending.	
Organisational Projects	6.7	Under budget mainly due to delays in Te Ngākau Civic Precinct work programme.	
		This is mostly offset by increased spend on ICT infrastructure and staff	
		accommodation projects.	
Water - upgrades and renewals	4.7	The current position is due to the Wallace St network project being ahead of	
		schedule and phasing of the budget. This is partially offset by delays in the	
		Omāroro project and wider programme due to COVID-19 lockdown.	
Central City Framework	3.9	The North Lambton Quay project was delayed to be aligned with the LGWM Golden	
		Mile workstream and there were delays in the laneways programme (Swann/Garrett	
		will be delivered next year, and Stout St is dependent on LGWM decisions).	
Community Halls - upgrades & renewals	3.6	Under budget primarily due to the delayed Community Halls work programmes.	
		This will be reviewed as part of the LTP planning process.	
Southern Landfill Improvement	3.5	Under budget on the Landfill Stage 4 development due to consent delays and	
		further consultation with the community.	
Stormwater - upgrades and renewals	3.4	Non-essential work was impacted due to the focus on Wastewater issues.	
		The work programme will be reassessed during the LTP planning process.	
Wellington Venues renewals	3.0	Under budget on the fitout upgrade, which is dependent on the delayed earthquake	
		strengthening on St James Theatre.	
Public Convenience and pavilions	2.3	Under spend relates to delays caused by unforeseen additional work and re-	
		working of the Alex Moore Park Sports Hub project.	
Wellington Waterfront Development	2.2	Under spend due to later than planned signoff on Frank Kitts Park.	
Coastal	1.9	Under budget mainly due to re-phasing of the Coastal programme of works.	
		This will be reassessed during the LTP planning process.	
Basin Reserve	(1.1)	Over budget predominantly due to increased costs relating to the Basin Reserve	
		Museum Stand.	
Wellington Convention & Exhibition	(6.6)	The Convention Centre project is forecast to deliver on budget for the completion	
Centre (WCEC)		of the project with the current variance being due to the phasing of the budget.	
Wastewater - upgrades and renewals	(9.4)	Increased capital expenditure as a consequence of remedying the Mt Albert sludge	
		pipeline, CBD tunnel and Cuba Street interceptor, partially offset by delays due to	
		COVID-19.	
Other	14.2	Smaller miscellaneous delays in a number of projects.	
Total 2019/20 variance	54.7	Underspend	

to various timing issues arising from project design

Figure 5: Budget vs actual capital expenditure for each activity area ($m)

Governance

Environment and infrastructure

Capital programme variance summary ($m) Many of our significant capital projects involve collaborative partnerships with community, suppliers and other stakeholders. We also want to ensure projects are fit for purpose as circumstances or requirements change. The timing of these projects therefore needs to

be flexible. There were several capital projects that were delayed due to various timing issues arising from project design and costing, public consultation and consenting requirements. There were also some delays to projects resulting from the COVID-19 lockdowns, which resulted in a capital underspend at the end of the 2019/20 year.

and costing, public consultation, and consenting requirements. There were also some delays to projects resulting from the COVID-19 lockdowns. These are discussed in more detail in the Capital Underspend table in this section.

Economic development
Cultural wellbeing
Social and recreation
Urban development

Transport

0	10	20	30	40	50	60

70	80

Table 4: Capital programme variance explanations ($m)

2017/18	2018/19	2019/20	2019/20	2019/20
Actual	Actual	Budget	Revisions	Actual

2019/20
Revised

Variance		Carry to revised	forwards

Table 3: Capital expenditure by activity area ($000)

Actual

Budget

		budget	budget		
Governance	8	–	123	22	48	145	97	-	
Environment & infrastructure	45,428	40,471	58,029	8,045	58,587	66,074	7,487	7,476	
Economic development	599	738	3,089	1,050	1,111	4,139	3,028	3,352	
Cultural wellbeing	443	4,145	16,941	237	23,536	17,178	(6,358)	(4,221)	
Social and recreation	40,253	30,025	36,214	6,690	31,651	42,904	11,253	12,490	
Urban development	19,504	14,610	43,622	4,859	25,599	48,481	22,882	27,977	
Transport	55,465	54,313	58,107	614	49,090	58,721	9,631	10,702	
Total strategic areas	161,700	144,302	216,125	21,517	189,622	237,642	48,020	57,776	
Other Council activities	11,240	27,400	24,327	5,824	23,486	30,150	6,664	8,235	
Grand total full Council	172,940	171,702	240,452	27,341	213,108	267,792	54,684	66,011	

Te Pūrongo ā-Tau Annual Report 2019—2020	Summary of our year	Te Pūrongo ā-Tau Annual Report 2019—2020	Summary of our year

Where do my rates go?

What are rates for, and why are they important?*

Explaining your rates
We set our rates based on the needs of the community, their demand for services and affordability in rates.
Our rates revenue is split between targeted rates and general rates. The Council collected $322.0m (GST exclusive) of rates during 2019/20.
General rates are paid by all ratepayers and applied

Targeted rates are paid by a specific group of ratepayers who receive a specific service – for example water, stormwater and wastewater services in rural areas, and business improvement districts (BIDs).
Whether you rent, own a home or a business in Wellington you’ll be contributing to Council rates either directly or indirectly.

In the same way our taxes contribute to the running of the country, rates are important to ensure Wellington continues to function.

Some of the services and facilities that Wellingtonians receive through their rates include:

to services which benefit the whole community – for example, maintaining parks and walkways, operating our libraries, and renewing our roads and footpaths.

Your money helps us deliver more than 400 day- to-day services and pay for the borrowings used to fund big capital projects across Wellington.

81
million litres of drinkable water piped per day

700
km of footpaths maintained and upgraded

101,234
native plants planted with the community

Business

Wellington City Council

Wellington   City 400 day-to-day services

Home

1,048
km of wastewater pipes maintained and upgraded

350
km of walking and biking tracks maintained

202
sqm of open space per Wellingtonian

14,500
LED streetlights operated

242,065
calls answered by
our Service Centre staff

671
km of stormwater pipes maintained and upgraded

105
playgrounds maintained and upgraded

802,000
items can be borrowed from our 14 libraries

800,000
resources in City Archives

24	25

 	 	 	 	 	 	 	 	 	 	 	 	 	

Our

Section two

performance

 	
in detail

 	 	 	 	 	 	 	 	 	 	 	 	

I tēnei wāhanga
Ka whakaahua tēnei wāhanga i ā mātou whakatutukinga
ā-taipitopito nei mō tēnā, mō tēnā o ā mātou mahinga me ā mātou rōpū whakahaere ā-Kaunihera. Kei ia mahinga he tirohanga whānui o ngā mahi o te tau, he whakarāpopoto i ngā tahua ahumoni me ngā inenga whakatutukinga.

 	

 	

In this section
This section describes our Statement of Service Provision, which is how we performed in each of our seven strategic activity areas and our Council-controlled organisations. Each activity area, as introduced on pg 15 and 16, includes an overview of the activities from the year, a summary of financials and performance measures.

 	

 	

How to read this section
What’s being reported?
This section of the report includes:
Overview of the year includes the impact of COVID-19 and summary of our financial and non-financial information. Where applicable we have included details of the results before COVID-19. Definitions for the various Alert Levels are below:
Level 4 – from 25 March to 27 April 2020
full nationwide lockdown, all public venues and many public places closed, everyone at home except essential workers, restricted to 5km from home.
Level 3 – from 28 April to 13 May 2020
semi-lockdown restrictions, local travel only, social distancing, all public venues closed, businesses allowed to reopen with strict operating guidelines, gatherings of up to 10 people.

Level 2 – from 14 May to 8 June 2020
limited restrictions, gatherings of up to 100, nationwide travel allowed, public venues and places, businesses, schools and offices open with strict operating guidelines, face coverings on public transport.
Level 1 – from 9 June 2020
no restrictions on movement or gatherings, encouraged to keep records of movement, border still closed.
Activity areas What we did and key projects from our work programme for the year. The majority of these items are non-COVID-19 related.
Financial information capital expenditure and operational expenditure for each activity area.
Performance information overview of outcome indicator trends and key performance measures and targets. Performance measures cover quality, timeliness, affordability and utilisation.

26	27

Te Pūrongo ā-Tau Annual Report 2019—2020	Our performance in detail

1.
Pārongo ā-tāone
Governance

Oscar Doorne
Customer Service Representative
Things changed quickly so we needed to respond

This chapter explains what we did and how we performed in our Pārongo ā-tāone Governance portfolio of activities.

29

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

 	

Overview of the year

Our services in this section include governance support, strategy and policy work, information collection and archiving, community engagement, and Māori and mana whenua partnerships.

Impact of COVID-19
The following outlines the impact of COVID-19 on our work programme and provides a snapshot of the delays or additional work carried out in response to the lockdown.
COVID-19 changed how some of our Governance services were delivered, but many were able to continue.
The Contact Centre was a key channel for providing information to the public and feedback to the Council’s Pandemic Response Team, including welfare assistance requests, reports of illegal rubbish dumping and illegal gatherings during Level 4. The number of calls to the Centre halved during Level 4 from about 21,000 calls per month to 9,767 in April before returning to normal volumes once lockdown ended.
An interactive COVID-19 timeline and resource collection was created at City Archives to track how the Council and city responded to the impact of the pandemic.
We moved Committee and Council meetings online, including public participation and oral hearings for some key consultations.
The pandemic had an impact on policy and strategy work as community consultations were stopped

This year we managed and successfully held the Wellington City Council election, progressed the digitising of our City Archive and continued our work on revitalising te reo Māori in the city and within the Council.

The 2020/21 Annual Plan and budget needed re- worked to incorporate the Council’s pandemic response measures. It was therefore adopted later than usual on 21 July 2020.
Māori liaison officers and iwi entities were updated daily on the pandemic response and iwi and Council leaders continued to hui using online channels.
Many of the processes introduced during the lockdown period are still operating, for example members
of the public being able to attend meetings and speak via Zoom. This has made it even easier for the public to participate in the democratic process.

Many of the processes introduced during the lockdown period are still operating, for example members of the public being able to attend meetings and speak via Zoom

Performance summary
This strategy area is responsible for delivering six percent of Council’s performance measures. Out of the 14 KPIs, one was exceeded, seven within 10 percent of target and six were not met. COVID-19 did not have a material impact on the KPIs in this area. Improving our engagement with Māori residents and our mana whenua partners remains a challenge and is reflected in some targets not being met.

1

6

7

Key performance indicator results

Not met Within 10% Exceeded

Financial summary
The financial result for Governance was not significantly impacted by COVID-19 as many services were able to continue. Operating expenditure and operating revenue was delivered on budget and capital expenditure was marginally underspent due to Council chambers office fitout being included in workplace project.

The outcomes monitored in this area mainly had no trend. The one negative trend was in relation to voter turnout at local elections. The positive trend was in residents valuing diversity in the city.
For full details of outcome and key performance indicators and variance explanations, please see page 117.

1

1

Outcome indicator trends

1 down,
1 up,
8 no trend

For more details on the Governance budget, please see page 34.

during Level 4. This delayed some work until the
public feedback could be gathered later in the year.

Net operating expenditure	Capital expenditure

Community engagements were restarted in Level 3 using new digital resources, including webinars, and social media panel events.

On Target

Underspend	Overspend

On Target

Underspend	Overspend

Variance: on budget	Variance: $97k or 66% under spent

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

 	

Mana Whakahaere, pārongo me ngā mahi whai wāhi
Governance, information and engagement

Rangapū Māori/ mana whenua
Māori and mana whenua partnerships

What we do
In this area, we seek to build public confidence in our decisions by being as transparent as possible, clearly communicating the reasons for the things we do and encouraging public participation in the decision-making process.
Key projects
Some of the activities we did in our Governance, information and engagement area this year were:
2019 local body elections
In October, a new Council was elected following the 2019 local elections, with a voter turnout of 40.1 percent. In this election, Council partnered with the region’s other councils to introduce two new services to make it easier for people to cast their votes.

…11 out of 15 elected members took their oath of office in te reo Māori

The Mayoral election was the closest in the city’s history, with only 62 votes separating Mayor Andy Foster from former Mayor Justin Lester. The closeness of the result prompted an application for a full recount, which was declined by the District Court. Six new Councillors were also elected for the first time.

Governance and information services
The Council Contact Centre responded to 242,065 calls this year, down approximately 25,000 calls when compared to last year, mainly due to COVID-19. They also responded to 33,877 emails. This area was also responsible for ensuring that quality governance processes were followed at the 62 decision-making meetings held during the year. The full Council meetings were live-stream and viewed 10,843 times.
Hearing from our community
This year, we consulted formally on more than 35 proposals, which is fewer than normal because the COVID-19 lockdown delayed consultations until the 2020/21 year. The proposals in 2019/20 included our Newlands Park upgrade, e-Scooter survey, Safer Speeds for the Central City, town centre plans, changes to traffic rules, playground upgrades, changes to bylaws, policy and strategy reviews, and our Annual Plan.
City Archives
This year the new City Archives online resource called Archives Online was launched and has had a great uptake. Currently 148,904 collection items have been digitised and a three-year programme of work
is now underway to digitise the remaining 80 percent of the collection. This will enable a self-service
user driven way to access the information 24/7.

What we do
In this area the Council is focused on incorporating more te reo Māori into business-as-usual practices and making it seen, heard and used more widely in the city through our Te Tauihu action plan. We also partner with mana whenua and recognise their special
place in the city’s history and their relationship with its land, waterways and other parts of its environment.
Key projects
Some of the activities we did in our Māori and mana whenua partnerships area this year were:
Mana whenua partnerships
Council and iwi entities have had significant leadership changes over the past year and there are on-going conversations about how to build the capacity of mana whenua to participate to create a meaningful partnership and fulfil our commitments under Te
Tiriti o Waitangi. The relationship building between the new leaders is continuing to grow and part of the new Council leadership team includes a Head of Māori Strategic Relationships position.
This year mana whenua welcomed the new Council at Pipitea Marae and 11 out of 15 elected members took their oath of office in te reo Māori. They also gifted the name Paekākā for the area that includes the Cable Car Museum, Space Place, Met Service, and Wellington Botanic Gardens, and the street name Waripori Street was corrected to Te Wharepōuri Street. The sign
install was delayed due to the COVID-19 lockdown.

Te Tauihu te reo revitalisation
The Council’s goal of becoming a bilingual city by 2040 has been progressed during the year through initiatives such as:
Election materials with increased te reo Māori content and appeal.
The annual Te Rā o Waitangi free concert at Waitangi Park.
Sponsoring the annual Rā Haka at ASB Sports Centre which brings college students from across the region together to learn local haka.
Continuing to create bilingual signage in facilities and te reo Māori content in council reports and publications.
Successful programme of events was held for Te wiki o te reo Māori in September.
Two of our brochures and web maps were translated and published in Te Reo Maori: Birds of Wellington Gardens - Ngā Tohutohu Mataki Manu, and Wellington Walks - Ara Rēhia o Pōneke.

The Cable Car

June 1967, Mayor Frank Kitts (centre) – City Archives	Pipitea Marae

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Governance
finances
How it was funded
Services in this activity area are mostly funded through general rates, with a small portion funded through fees and user charges for Civic Information and City Archives.
Detailed information on funding is on pg 310 and 311 of Section 4: Financial Statements.

What it cost (operating expenditure $000)

1.1 Governance, information and engagement	2017/18	2018/19	2019/20	2019/20	2019/20	
	Actual	Actual	Actual	Budget	Variance	
Expenditure	17,214	17,621	19,469	19,585	116	
Revenue	(498)	(511)	(766)	(894)	(128)	
Net Expenditure	16,716	17,110	18,703	18,691	(12)	
1.2 Māori and mana whenua partnerships						
Expenditure	305	361	307	316	9	
Revenue	(4)	(45)	-	-	-	
Net Revenue	301	316	307	316	9	
Governance Total		
Expenditure	17,519	17,982	19,776	19,901	125	
Revenue	(502)	(556)	(766)	(894)	(128)	
Net Expenditure	17,017	17,426	19,010	19,007	(3)	

What it cost (capital expenditure $000)

1.1 Governance, information and engagement expenditure	2017/18

Actual	2018/19

Actual	2019/20

Budget	2019/20

Revision	2019/20

Actual	2019/20
Revised budget	
Variance to revised budget	2019/20
Carry forward	
Total	8	-	123	22	48	145	97	-	
Budget included planned spend for Council chambers office fitout which was included in workplace project spend.

Governance
performance
The following tables provide a summary of how well we performed against Council’s agreed measures: outcome indicator trends and key performance indicators results for the Governance activity area. Some of the KPIs and Outcomes use information from the Council’s Residents’
Monitoring Survey (RMS), which is undertaken on an annual basis. The survey has a margin of error of +/- four percent.
Outcome Indicators
We use outcome indicators to monitor our city over time, which provides information on trends that may influence our performance, including those outside our control. We do not set targets for outcome indicators though we have a desired trend direction. Of the 10 outcome indicators we monitor, one was trending in the desired direction and one had an adverse trend. For details see page 117.
Total                                                                                                                                                                                             1 Pārongo ā-tāone – Governance	1	8	1	10
The one negative trend was in relation to voter turnout at local elections. The positive trend was in residents valuing diversity in the city.

Key Performance Indicators
We use performance measures to track how well we are delivering services against targets as set out in the 10-year and Annual Plans. The detailed results of Key Performance Indicators are listed in Chapter 9 of this section, see page 115. These pages include data for the last three years to show trends and include variances

explanations for relevant areas where targets have been exceeded or not met.

 Not met
1.1 Governance, information and engagement 2	

6	Within 10%	

1	Exceeded	Total

9	
COVID-19 did not have a material impact on the KPIs in this area.						
1.2 Māori and mana whenua partnerships	4	1		0		5	
Improving our engagement with Māori residents and our mana whenua partners remains a challenge and is reflected in some targets not being met.

1 Pārongo ā-tāone – Governance Total	6 or 43%	7 or 50%	1 or 7%	14 or 100%	

34	35

Te Pūrongo ā-Tau Annual Report 2019—2020	Our performance in detail

Spotlight on
COVID-19 and
the Annual Plan

When the COVID-19 pandemic arrived in New Zealand, Wellington City Council, like many around the country was well advanced in the planning for the next financial year.
The draft budgets and work programmes had been written and were all ready to be taken out to the public for feedback as our 2020/21 draft Annual Plan.
However, when the country was put into a lockdown on 25 March, it was apparent that things needed to change, and fast.
Leading into the COVID-19 pandemic the Annual Plan had a circa 9 percent rates increase. This plan was significantly re-written to respond to the pressure and uncertainty faced by all sectors in the city.
The Council responded in two stages by:

Implementing a Pandemic Response Plan with immediate financial and non- financial support measures; and
Redeveloping the 2020/21 Annual Plan to reflect the forecast COVID-19 economic downturn, including lower rates rise options of 5.1 percent and 2.3 percent.

The challenge was that the proposals were available for public consultation between 8 May and 8
June 2020 covering COVID-19 Levels 3 and 2.
This significantly limited the Council’s ability to reach and engage with residents on the Annual Plan proposals, with the traditional face-to-face methods off the table.
Also the pandemic alert level changed from Level 3 to Level 2 at 11.59pm on Wednesday 13 May, which was announced on 11 May, four days into the consultation.
The loosening of some restrictions meant that residents, organisations and community groups were understandably focused on: changes to lifestyle and
work under the new Level 2 rules, rather than the Annual Plan; issues they were facing in May rather than thinking about the next financial year; and broadcast media,

online communications and advertising channels were also heavily focused on pandemic related information - which intensified the competition for the public focus.
The Council trialled different digital engagement tools to reach the community in an attempt to replicate face-to-face methods. These included six ward-based webinar events and a Facebook Live youth panel discussion. This was supported by social media and digital marketing channels.
The ‘Wardinars’ provided residents with an opportunity to ask questions directly of their elected members
in town hall style events. The Facebook Live panel discussion was an attempt to reach youth, which is a target audience for the Council. It was co-designed and hosted with youth and included representatives from university student associations and the Youth Council.
Both new engagement methods were successful and helped elevate the understanding and awareness of the Annual Plan in tough times. The Council will continue to use new digital engagement tools in the future.

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

The Council will continue to use new digital engagement tools in the future

37

36

Tim Harkness
Walkways and Reserves Specialist
We were ready to work under Level 3

Te Pūrongo ā-Tau Annual Report 2019—2020

2.

Our performance in detail

Te Taiao me te hanganga Environment & infrastructure

This chapter explains what we did and how we performed in our Te Taiao me te Hanganga Environment and infrastructure portfolio of activities.

39

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

 	

Overview of the year

This area covers an extensive range of Council services including everything from open spaces, waste reduction and energy conservation to water, wastewater
and stormwater. Also part of this portfolio are our conservation attractions Wellington Zoo and ZEALANDIA.
This year we approved our Outer Green Belt Management Plan, upgraded the main entrance of Makara Mountain Bike Park, celebrated the 150th anniversary of the Botanic Garden, began to implement

Impact of COVID-19
The following outlines the impact of COVID-19 on our work programme and provides a snapshot of the delays or additional work carried out in response to the lockdown.
While COVID-19 materially impacted the use and delivery of the services and facilities in this area, not all were equally affected.
There were decreases in utilisation of the Zoo and ZEALANDIA because of closures under Level 4 and 3.
To encourage people to return to these facilities and the city, entry was free until the end of June for the Zoo and until 19 July for ZEALANDIA (the end of the school holidays).
There were increases in the casual use of parks and open spaces by residents and an increase in the understanding of our biodiversity and bird life. Council supported this with social media campaigns and changes to some
road speed limits to keep people safe.

our carbon zero policy Te Atakura and continued to promote waste minimisation initiatives.
However, there was also ongoing public concern with the resilience of our water infrastructure as a result of significant, high-profile and costly failures in our wastewater network. A Mayoral Taskforce on Water was established to investigate this issue.

Organised volunteering activity was put on hold during Alert Levels 4 and 3. Council worked closely with the sector providing support and assistance.
Essential water systems and services remained operational during the lockdown.
The major repair of the Mt Albert pipe was delayed, with workers from Germany needing to quarantine before starting the repair. More about this can be found on the Wellington Water website7 and in the article at the end of this chapter.
Recycling collection services were suspended under Alert Level 4 and 3, but kerbside rubbish collection continued.
Southern Landfill site activities were stopped during Alert Level 4 – except for the essential services, municipal solid waste and sewage sludge. The landfill was reopened to all account customers
at Level 3, and to all customers at Level 2.

Performance summary
This strategy area is responsible for delivering about 31 percent of Council’s performance measures. Out of
the 70 KPIs, 20 were exceeded, 32 within 10 percent of target and 18 were not met. This means 74 percent of the Environment and infrastructure performance measures either met or exceeded their targets for the year.
Our Council-controlled organisations that support our natural environment (Wellington Zoo and ZEALANDIA) are responsible for delivering 10 of

20

18

32

Key performance indicator results

Not met Within 10% Exceeded

Financial summary
Significant additional operating expenditure for wastewater accounted for 75 percent of overspend in this year’s Environment and infrastructure budget. However overall, this additional spending was largely offset by additional revenue from waste operations meaning a net variance of only 4 percent over budget.

the 20 results that exceeded targets, despite being significantly impacted by the COVID-19 closures.
Of the five outcome indicators that have a positive trend, three are related to access to green
open spaces: increased numbers of hectares provided and increase in reported frequency of use of all Wellington’s open spaces.
For the full set of outcome and key performance indicators and variance explanations, please see page 116.

2

5

Outcome indicator trends

2 down,
5 up,
11 no trend

In capital expenditure, the $9.3m overspend for sewage collection and disposal was due to the need to truck sludge from Moa Point to the Southern Landfill after the Mt Albert pipe failure. This was partially offset by underspends caused by rephasing of other capital expenditure – the coastal programme, landfill development and reassessment of stormwater works programme. For more details, please see page 46 to 47.

Net operating expenditure	Capital expenditure

To encourage people to return to these facilities and the city, entry was free until the end of June for the Zoo and until 19 July for ZEALANDIA

On Target

Underspend	Overspend

On Target

Underspend	Overspend

7wellingtonwater.co.nz/work-in-your-area/moa-point-sludge-pipelines/

Variance: $6.3m or 4% overspent	Variance: $7.5m or 11% under spent

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

 	

Ngā māra, tātahi
Gardens, beaches and green
open spaces

Whakaheke para, Tiaki pūngao
Waste reduction
and energy conservation

What we do
In this area we seek to continuously adapt and restore our natural areas. This includes providing quality accessible green open spaces, maintaining and managing walking and biking tracks, ensuring our Wellington Gardens are cared for, and enhancing
Wellington’s biodiversity, including extensive trapping through Predator Free Wellington and Capital Kiwi.
Key projects
Some of the activities we did in our Gardens, beaches and green open spaces area this year were:
Natural environment and biodiversity
This year we celebrated the 150th anniversary of the Botanic Gardens and accepted the gift from mana whenua of the name Paekākā for the area that includes the Cable Car Museum, Space Place, Met Service, and the gardens.
To improve the city’s biodiversity and with the aim of bringing kiwi back to the city, an extensive trapping network was created on Miramar peninsula. Possums and stoats have been eradicated and only low numbers of rats remain. There are now 50 suburbs involved in backyard trapping with more than 8,000 traps deployed across the city. We also developed an Urban Ecology
GIS spatial tool integrating weed control, restoration planting and pest animal control data in one place.
This area also includes the Natural Environment Fund, which funded 12 applications for a total of $51,837.
Te Motu Kairangi Reserve
The 72.7-hectare park on the north end of the peninsula was announced in May 2019. The project has been paused while the Crown and Port Nicholson Block Settlement Trust continue their discussions about the site. However, some heritage assessment work was completed, an ecology assessment was started and background work relating to heritage
management planning, master planning and operational management continued as far as possible.

Outer Green Belt Management Plan
The Outer Green Belt Management Plan was approved by the City Strategy Committee on 22 August 2019.
The plan guides the management, development and use of the Outer Green Belt for the next 10 years, and the role it will play as the city grows and changes.
Makara Peak Mountain Bike Park
This year we upgraded the Makara Peak Mountain Bike Park main entrance and carpark. This was an action from the park’s master plan with the aim of providing a facility suited to a regional destination bike park.
The outcome of this work is a larger safer car park, and an increase in toilets facilities with a shower and a larger bike wash area. The new entrance has received very positive feedback from users. We also
completed two new trail builds and assisted the Makara Peak supporters with two volunteer-built trails.

Makara Peak Mountain Bike Park

What we do
In this area we work to make Council facilities and services more energy efficient; investigate,
monitor and work to mitigate the effects of climate change; encourage waste minimisation and actively divert waste from the Southern Landfill; and operate the Tip Shop and Recycling Centre.
Key projects
Some of the activities we did in our Waste reduction and energy conservation area this year were:
Te Atakura Implementation
Te Atakura (First to Zero) is our plan for reducing carbon emissions and becoming a net zero carbon city by 2050. During the year we:

Earned $50k of co-funding from central government for four Fast Electric Vehicle Chargers at the new Waitohi Community Hub
Obtained Toitū CarbonZero certification of the Botanical Gardens, Basin Reserve, Wellington Museums Trust and Wellington Cable Car as well as the recertification of ZEALANDIA and the Zoo
Completed our 5th CEMARS (now Toitū CarbonReduce) Audit
Installed 28 electric vehicle charging stations
Launched a new, leaner form of Home Energy Saver that also covers carbon emissions
Users doubled in two car share programmes supported by Council
Received a top rating from the CDP (formerly the Carbon Disclosure Project) and Global Covenant of Mayors for both mitigation and adaptation. These are two top-tier climate reporting organisations.

Potential Extension to the Southern Landfill
The consent for our current landfill expires in 2026.
In August 2019, we announced the commencement of a project for an extension that would provide additional landfill capacity for the next 25 years. As part of this, we ran a community engagement process, and an analysis of alternatives to landfill. Following this, we undertook to lodge a resource consent application
to extend the Southern Landfill. This attracted attention and some opposition from the community. We are listening to these concerns and working to better address them prior to progressing further.
Waste Minimisation Seed Fund
This year, four applications were funded through the fund for larger (over $2,000) grants, totalling
$50,000. The average grant was $12,500, the largest being $17,993, and smallest $6,745.

Te Atakura (First to Zero) is our plan for reducing carbon emissions and becoming a net zero carbon city by 2050

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

 	

2.3, 2.4 & 2.5 Te Wai
Three waters

2.6 Ngā painga kukume whāomoomo
Conservation attractions

What we do
In these three areas the regionally owned Council- controlled organisation Wellington Water Limited (WWL) is responsible for the provision, management and quality of clean, safe drinking water and efficient wastewater and storm water services.
For more details on the activities and performance of WWL, please refer to its Annual Report8.
The organisation is profiled on pg 112 in the
Council-controlled organisations chapter, including details of its board and governance structure.
Note: 12 performance measures in these activity areas received a qualified audit opinion. More information about these measures and the reason for the qualification can be found in Chapter 9: Detailed performance information from pg 114 to 116.
Key projects
Mayoral Taskforce on Water
The three waters services and Wellington Water were under increased scrutiny this year as a result of several significant pipe failures. Late in 2019 and early in 2020, wastewater network failures in Dixon St and in the Mt Albert tunnel had significant financial and environmental consequences9.
These pipe failures and the resulting discharge into the harbour increased the public’s awareness of the pollution of the harbour and other parts of Wellington and that our three waters infrastructure is ageing and under pressure. At the same time, the quality of water in the Owhiro and Karori Streams was found to be very poor, causing communities to query how this had happened.
We are also facing several challenges that will influence the decisions we make about the three waters network, including climate change, increased demand, natural hazards, rising costs, design and government regulatory changes.

All of these issues prompted the Mayor to convene a Taskforce to inquire into specific problems relating to water issues in Wellington and to identify initiatives to address these issues by recommending an action plan to the Council through the long- term planning process. The Taskforce comprised
of internal and external experts and stakeholders, who worked for six-months on the programme.
Many of the findings are expected to interrelate with the Government’s announcements on Water Reform in New Zealand. The Taskforce supported embracing active participation in the Water Reform Agenda – thereby more quickly delivering improvements in water service provision, gaining appropriate injections of much-needed capital and operational funding and leading to improved environmental outcomes.
All Taskforce business and recommendations are available on the Council website10.
Government three waters reforms
Wellington is not alone with its water challenges. National awareness of the serious problems with water was triggered in part by an outbreak of campylobacter in Havelock North in August 2016.
The Government has found that most councils do not have the capital funding headroom nor debt raising ability to adequately fund their long-term needs to meet increasing levels of service and growth.
It is therefore proposing significant water reform to ensure that infrastructure will serve us into the future. The Council has signalled interest in the water reform programme by opting-in to the programme through signing a non-binding memorandum of understanding, and in return will receive some funding in the 2020- 22 period. All councils in the Wellington Region
have signed memoranda with the Government.

The activities in this area are managed by two Council- controlled organisations: Wellington Zoo Trust and Karori Sanctuary Trust, which trades as ZEALANDIA
What we do
In this area we support Council-controlled organisations, Wellington Zoo and ZEALANDIA, in their conservation and visitor attraction work.
This helps to build understanding of biodiversity, conservation, and protect flora and fauna.
For more details on the activities and performance of the Zoo and ZEALANDIA, please refer to their Annual Reports11. These organisations are profiled on pg 113 and pg 107 respectively in the Council- controlled organisations chapter, including details of their boards and governance structures
Key projects
Wellington Zoo
Once re-opened in May after the Level 4 and 3 lockdown, the Zoo hosted 50,891 visitors during its free entry campaign to 30 June 2020.
This year it received a $400,000 grant from Pub Charity towards an upgrade of the Giraffe Management Facility and habitat.
Nestival
In December the Zoo celebrated Nestival, the 10th year anniversary of The Nest Te Kōhanga animal hospital. Festivities kicked off with a weekend of special veterinary-based activities for visitors followed by a stakeholder celebration on 9 December. The Nest Te Kōhanga-themed activities continued until the end of January.

ZEALANDIA
In August 2019, ZEALANDIA was named by Time magazine as one of the world’s best places to visit. It was also a finalist in the Community Award section of the New Zealander of the Year Awards 2020.
This year the sanctuary was granted resource consent for the lower reservoir perch removal project. The work was delayed for a year because of the pandemic.
Tītipounamu/rifleman success
The tītipounamu/rifleman birds that were translocated to ZEALANDIA in March 2019 started nest building
in quarter 2 of the year. This was an important first sign that the translocation had been successful and the birds were becoming established in the sanctuary. The first of the new tītipounamu chicks were then banded in November, and during the season more than 40 chicks were known to have fledged, marking the next stage of success for this translocation project.

In August 2019, ZEALANDIA
was named by Time magazine as one of the world’s best places to visit

8 wellingtonwater.co.nz/publication-library/
9 wellingtonwater.co.nz/work-in-your-area/dixon-street-wastewater-repairs wellingtonwater.co.nz/work-in-your-area/moa-point-sludge-pipelines/

10 wellington.govt.nz/services/environment-and-waste/water/mayoral- water-taskforce

11 visitZEALANDIA.com/AnnualReport
wellingtonzoo.com/assets/Resources/Annual-Report-2020-artwork-FINAL-higher-res2.pdf

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Environment and infrastructure finances
How it was funded
Services in this activity area are funded through a mixture of general rates, targeted rates, user charges and other revenue.
Detailed information on funding is on pg 312 to 317 of Section 4: Financial Statements.

What it cost (operating expenditure $000)

2.1 Gardens, beaches and open spaces	2017/18	2018/19	2019/20	2019/20	2019/20	
	Actual	Actual	Actual	Budget	Variance	
Expenditure	39,088	43,708	41,925	43,546	1,621	
Revenue	(3,980)	(4,574)	(3,008)	(2,996)	12	
Net Expenditure	35,108	39,134	38,917	40,550	1,633	
Under budget due to reduced street sweeping through the COVID-19 lockdown period. The reduced requirement caused by fewer people on the streets and fewer events.

2.2 Waste reduction and energy conservation
Expenditure	
19,329	
21,263	
21,823	
18,084	
(3,739)	

(21,974)	(16,722)	5,252

Increased costs arising from increased waste volumes.
Revenue	(19,163)	(18,137)

(151)	1,362	1,513

Additional revenue for contaminated and special waste from city and regional projects.

2.5 Stormwater	2017/18	2018/19	2019/20	2019/20	2019/20	
	Actual	Actual	Actual	Budget	Variance	
Expenditure	18,634	18,867	19,371	19,583	212	
Reduced expenditure in order to mitigate the wastewater overspend, so some selected minor stormwater work was deferred.

(2,332)	(163)	2,169

Revenue	(2,164)	(2,882)

17,039	19,420	2,381

Additional revenue from associated NZTA roading subsidies in relation to maintenance of stormwater sump clearing.
Net Expenditure	16,471	15,985
See above commentary for 2.4 Stormwater

2.6 Conservation attractions
Expenditure	
6,695	
6,770	
7,431	
6,927	
(504)	
Mainly due to additional grants paid by the Council to CCOs as part of the COVID-19 recovery. Also includes cost of providing free entry at Wellington Zoo and ZEALANDIA after the lockdown.

Revenue	-	(18)
Net Expenditure	6,695	6,751	-
7,431	-
6,927	-
(504)	
Environment total		
Expenditure	169,253	180,748	198,522	182,721	(15,801)	
Revenue	(29,136)	(32,062)	(30,725)	(21,186)	9,539	
Net Expenditure	140,117	148,686	167,797	161,535	(6,262)	

What it cost (capital expenditure $000)

2.1 Gardens, beaches, green open spaces	2017/18	2018/19	2019/20	2019/20	2019/20				
	
Actual	
Actual	
Budget	
Revision		Revised	Variance	Carry	
					Actual	budget	to revised	forward	
							budget		
	4,136	6,446	8,885	1,147	5,342	10,032	4,690	4,792	

2,059	5,558	3,499	1,741

Under budget as a result of re-phasing of the Coastal programme of works.

Net Expenditure (Revenue)	166	3,126
See above commentary for 2.2 Waste reduction and energy conservation.

2.2 Waste reduction, energy conservation

2,443	1,396	5,358	200

2.3 Water network
Expenditure	
42,224	
44,607	
48,615	
47,066	
(1,549)	
Increased costs from the doubling of front-line resources through the COVID-19 lockdown period. This ensured the reliability and continuity of the response during this time. Also increases in unplanned network repairs on leaks.

Under budget on the Landfill stage 4 development due to consent delays and further community consultation.

22,420	26,915	4,495	-

2.3 Water Network	14,982	12,169	22,016	4,899

23,612	14,278	(9,334)	-

The Wallace Street network project overspent as it is ahead of schedule and phasing of the budget. This is offset by the delays in the Omāroro project and wider programme due to COVID-19 lockdown, meaning an underspend overall in this area.

(767)	(38)	729

Revenue	(1,843)	(4,100)

2.4 Sewage collection and disposal network

13,898	9,507	10,288	3,990

47,848	47,028	(820)

Increased revenue from an increased number of new water connections.
Net Expenditure	40,381	40,507
See above commentary for 2.3 Water Network.

2.4 Wastewater
Expenditure	
43,283	
45,534	
59,357	
47,515	
(11,842)	
Increased costs resulting from the failure of the Mt Albert sludge pipeline (e.g. the transportation of sludge by tankers, the investigation and repair costs), and the repair costs from the Dixon St/Willis St tunnel collapse.

Increased capital expenditure resulting from repairs to the Mt Albert sludge pipeline, Dixon St/Willis St tunnel, and Cuba Street interceptor. This was partially offset by delays due to COVID-19.

3,965	7,332	3,367	-

2.5 Stormwater management	9,248	9,057	9,523	(2,191)
Non-essential work was impacted due to the focus on wastewater issues. The work programme will be reassessed during the LTP planning process.

1,189	1,959	770	943

2.6 Conservation visitor attractions	720	1,896	1,959	-
Under budget due to ZEALANDIA deferring the upgrade to Tanglewood House - the research facility for academics and interns.

Total	45,428	40,471	58,029	8,045	58,587	66,074	7,487	7,476	

Revenue	(1,986)	(2,351)	(2,644)	(1,267)	1,377	
Due to $1.5m of vested sewerage assets that were not budgeted.						
Net Expenditure	41,297	43,183	56,713	46,248	(10,465)	
See above commentary for 2.4 Wastewater.

46						

47

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Environment and infrastructure performance

Environment and infrastructure performance (continued)

The following tables provide a summary of how well we performed against Council’s agreed measures: outcome indicator trends and key performance indicators results for the Environment and infrastructure activity area. Some of the KPIs and Outcomes use information from the Council’s Residents’ Monitoring Survey (RMS), which is undertaken on an annual basis. The survey has a margin of error of +/- four percent.
Outcome Indicators
We use outcome indicators to monitor our city over time, which provides information on trends that may influence our performance, including those outside our control. We do not set targets for outcome indicators though we have a desired trend direction. Of the 18 outcome indicators we monitor, five were trending in the desired direction and two had adverse trends. For details see pages 118 to 119.

Total

Not met	Within 10%	Exceeded

Total

10

Water Network	5	3	2
Three waters performance results are reported by Wellington Water limited refer to Chapter 9 of this section for details. All response times for attendance and resolution of call outs have significantly missed target, whereas supply interruptions and customer complaints targets were exceeded.

10

Sewage collection and disposal network	3	5	2
All response times for attendance and resolution significantly missed target, whereas wastewater reticulation incidents and customer complaints targets were exceeded.

13

Stormwater management	2	9	2
Measure of e-coli at monitored sites deteriorated as did resident’s satisfaction with stormwater system. Number of pipeline blockages increased but was still ahead of target and once again reported customer complaints exceeded target.

20

Conservation visitor attractions	4	6	10

2 Te Taiao me te Hanganga Environment & Infrastructure Total	18 or 26%	32 or 46%	20 or 29%	70 or 100%	

Changes to visitor behavior during and following the COVID-19 restrictions greatly impacted both the Zoo and ZEALANDIA, mostly in a positive way.

2 Te Taiao me te Hanganga Environment and Infrastructure

2	11	5	18

The negative trends were in relation to water consumption and freshwater health. The positive trends were from residents’ access to and use of green open space, renewable energy uptake and energy use per capita.

Key Performance Indicators

We use performance measures to track how well we are delivering services against targets as set out in the 10-year and Annual Plans. The detailed results of Key Performance Indicators are listed in Chapter 9 of this report, see pages 133 to 139. These pages include data for the last three years to show trends and include variances explanations for relevant areas where targets have been exceeded or not met.

2.1 Gardens, beaches and green open spaces	

1	Not met	

6	Within 10%	

0	Exceeded	Total

7	
The number of Council education programmes did not meet target because no sessions were undertaken during Q4 due to COVID-19.

10

2.2 Waste reduction and energy conservation	3	3	4
Satisfaction increased for waste and recycling however both still behind target. Reduction in energy use has seen targets exceeded for energy used and cost savings.

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Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Spotlight on
Mt Albert
sludge pipe repair

This project will aim to minimise the carbon emissions from sludge treatment and disposal

Wellington City has an ageing three waters infrastructure. In 2019/20, the city experienced some large-scale wastewater network failures that created disruption for communities and businesses, one of these was the Mt Albert sludge pipeline failures.
The failures meant questions were asked about the condition of our network and how it was being managed. This led to the creation of the Mayoral Taskforce on Water, which is detailed on pg 44.
Mt Albert sludge pipelines
In January, the two high-pressure pipelines which convey wastewater sludge from the treatment plant at Moa Point to the de-watering plant at the Southern Landfill failed beneath Mt Albert. Sludge is a by- product of the wastewater treatment process.
The pipe failure caused a build-up of sludge that threatened to exceed the plant’s storage capacity and would have needed to be discharged into
the Cook Strait. Wellington Water activated a sludge trucking operation which successfully prevented this pollution from occurring.
This 24-hour-a-day trucking operation was discontinued in late May at the end of the pipe repair process, having transported more than 128 million litres of sludge, in more than 13,500 truckloads, covering over 332,000kms in total between the treatment plant and the landfill.
The timeline for the repair was longer than usual because the 1.8km pipelines run deep beneath Mt Albert, which presented a unique engineering challenge. An innovative, high-strength pipe-liner solution was chosen, using sophisticated technology developed in Germany. The approach had proven successful internationally, but it was the largest deployment of this type in Australasia.

Impact of COVID-19
The project was made all the more difficult by the COVID-19 pandemic and resulting restrictions in New Zealand and Germany. Engineers from Germany needed special dispensation from the New Zealand Government to enter the country
during lockdown restrictions. After going through quarantine, the German crew then worked with locals to successfully install the pipe liners beneath the mountain. Sludge pumping was then restored.
The project resulted in an additional $10.1m in operating expenditure and $6.7m in capital expenditure to
30 June 2020 with additional costs to be incurred before completion in 2020/21. Debt funding of up to $11.1m and
$5m respectively, was approved by Council in April 2020.
Even before the pipe failure, Council and Wellington Water knew the current volumes of sludge to landfill were not sustainable and had already planned to investigate alternatives. Options will be presented to Council later in 2020 and will extend beyond wastewater to consider the waste reduction impacts on the Southern Landfill. This project will also aim to minimise the
carbon emissions from sludge treatment and disposal, in support of Council’s Te Atakura – First to Zero strategy and its target of net zero carbon emission by 2050.

50	51

Aiko Collins
International Relations Advisor
The city’s international relations don’t stop when borders close

Te Pūrongo ā-Tau Annual Report 2019—2020

3.

Our performance in detail

Whanaketanga ōhanga Economic development

This chapter explains what we did and how we performed in our Whanaketanga ōhanga Economic development portfolio of activities.

53

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

 	

Overview of the year

Our services in this section include city promotions and business support. The majority of our performance
measures under Economic development are related to the work that the Wellington Regional Economic Development Agency (WellingtonNZ) delivers on behalf of the city.
This strategy area is also key to delivering several of the metrics for other performance indicators – for example economic growth, tourism, international students.
This year we hosted several major events in 2019 and early 2020 that had an economic benefit for the city,

Impact of COVID-19
The following outlines the impact of COVID-19 on our work programme and provides a snapshot of the delays or additional work carried out in response to the lockdown.
COVID-19 and the various Alert Levels had, and continues to have, a significant impact on our city’s venues and events, tourism, and businesses. The city’s tourism and hospitality sectors were significantly impacted, with restrictions in citywide and regional travel during Level 4 and 3 and international
tourists unlikely to return for some time.
The cancellation or postponement of events and the uncertainty on the future of international performers means that the income for Venues Wellington has all but disappeared. International content makes up a significant proportion of the commercial product hosted by Venues Wellington. The conference and business events in the venues have also been negatively impacted by COVID-19,

including Black Caps and White Ferns matches, All Blacks vs South Africa game, World of Wearable Art, the Eva Rothchild exhibition Semi Conductor, the Queen and Adam Lambert concert and the NZ Festival.
We also began the construction of the Tākina Convention and Exhibition Centre and continued the work to strengthen the St James Theatre.

We were able to work on new events and to showcase some in new ways, for example CubaDupa was held as a virtual event;
WellingtonNZ set up the COVID-19 Business Response Team in March as New Zealand went into lockdown. Read more about this on page 60.
WellingtonNZ set up Love Local – a campaign across the COVID-19 period focussed on getting consumers to support local businesses by buying from local companies.
Wellington Airport
The Council, alongside the other shareholder Infratil, will provide shareholder support to Wellington International Airport Limited as it deals with the impacts of COVID-19. The support is through the underwriting
of a convertible equity type arrangement, which
ensures that funding is able to be quickly accessed by

Performance summary
This strategy area is responsible for delivering about four percent of Council’s performance measures.
Out of the 10 Economic Development KPIs, two exceeded their targets, five were within 10 percent of target and three did not meet their targets.
One of the KPIs that exceeded target was the number of businesses actively supported by WellingtonNZ through the regional business partner programme.
This was tracking well before COVID-19, then increased further due to the pandemic recovery support offered.

2

3

5

Key performance indicator results

Not met Within 10% Exceeded

Financial summary
Although operating expenditure and revenue were greatly impacted by COVID-19, with revenue under budget by
42 percent and expenditure reduced by 18 percent, the overall variance was immaterial. Expected capital
expenditure on the St James Theatre continued to track behind schedule with the 73 percent underspend being

The majority of the outcome indicators in this area that had no trend relate to international and domestic visitors measures which had data that was unavailable or significantly different because of COVID-19. For example, there was a 1.4 million decrease in the domestic arrivals at Wellington
Airport when compared to last year, but this measure had been steadily trending up in previous years.
For the full set of outcome and key performance indicators and variance explanations, please see page 116.

2

10

Outcome indicator trends

2 down,
10 up,
24 no trend

carried forward to future years. Some of the delay in the St James Theatre was caused by the COVID-19 lockdown. For more details on the Economic development budget, please see page 116.

including the willingness to book future events.
Businesses also pay 45 percent of the total rates in

Wellington Airport, if needed, and provides comfort to the company and its lenders that the shareholders are

Net operating expenditure	Capital expenditure

the city and provide jobs for Wellingtonians as well as others in the region. It was important businesses were supported so they could be at the forefront of the economic recovery. Actions included:
$7.6m City Recovery fund, which came from combining the uncommitted 2019/20 funding and the 2020/21 budgets of the City Growth, Destination Wellington and Capital of Culture funds;
Rates and rent payment options as well as refunds for fees and licenses held by

supporting it if necessary. The underwrite is on a pro- rata basis in line with the respective shareholdings.
Supporting Sky Stadium
The Council, along with Greater Wellington Regional Council, agreed to provide a ten-year loan to the Wellington Regional Stadium Trust (trading as Sky Stadium) to support it to remain event ready. Council and Greater Wellington Regional Council will make available up to $2.1m ($4.2m total) to the Trust from 2020/21.

On Target

Underspend	Overspend

On Target

Underspend	Overspend

hospitality, sport and business sectors;	Variance: $644k or 3% under spent	Variance: $3.0m or 73% under spent

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

 	

3.1 Whakatairanga tāone
City promotions & business support

What we do
In this area we support Wellington’s economic growth by encouraging high-quality events and promoting tourism, attracting and supporting business activity, and delivering major economic development initiatives. Economic growth means Wellingtonians can continue to enjoy a high quality of life.
Some of the activities in this area are managed by Council-controlled organisation WellingtonNZ. The organisation is profiled on pg 110 in the
Council-controlled organisations chapter, including details of its board and governance structure.
Key projects
Activities we did in our City promotions and business support area this year included:
Tākina Convention and Exhibition Centre
The $157.8m Tākina Convention and Exhibition Centre (WCEC) will be Wellington’s first purpose- built facility able to host conventions of up to 1400 delegates and offering 18,000m2 of conference and exhibition gallery space over three floors. It will also feature a 1280m2 exhibition gallery space.
Work commenced on site following the awarding of the construction contract for the Centre to LT McGuinness. The initial works focused on the site
excavation and preparation for the piling works which were largely completed prior to the site being locked down under the COVID-19 restrictions. Post lockdown, work started on the base isolator installation and
the start of the steel framing and ground floor.
COVID-19 has resulted in some slippage in the projected completion date, with a move from December 2022 to February 2023.

Over the course of the year we have worked with Taranaki Whānui and WellingtonNZ on the process of developing a narrative and identity for the Centre, and this work culminated in Council agreeing to name the centre Tākina. Marketing for the Centre commenced during the year with the launch of the website (wcec.co.nz) and attendance at several trade shows.
WellingtonNZ programmes
This year, 44 Wellington based businesses were incubated or accelerated through WellingtonNZ’s CreativeHQ programmes. We also hosted business events valued at $13.4m to the local economy. The economic development agency also promoted the region and tourism resulting in $91.4m of out of region venue
and event expenditure, 583,132 international visitors and $2.3m in visitor spend in the region. This year Venues Wellington premises hosted 325 events.
St James Theatre
The St James Theatre is part of the city’s social and cultural identity and has been a leading venue for theatre, film, music and ballet for more than a century. Seismic strengthening work continued to progress during the year, which will bring the theatre up to a minimum
of 67 percent NBS with a target completion date of 31 December 2021 – ahead of the 2022 New Zealand Festival. However, as construction had to be stopped during Level 4, there is increased risk on this timeline.
The budget for this project is $34.06m. Of this, $17.4m was originally budgeted in Our 10-Year Plan 2018-
28, however this was based on concept designs. An intensive building survey and detailed structural design revealed more complex seismic strengthening was required at an additional $8.1m. A further $8.6m has been budgeted to complete the recommended building and theatre system upgrades during the closure of
the theatre. These funds were approved in 2018/19.

The $157.8m Tākina Convention and Exhibition Centre will be Wellington’s first
purpose-built facility able to host conventions of up to 1400 delegates…

International relations
As the capital city of New Zealand, Wellington’s diplomatic community is a vital part of our city’s culture and economy. We have a close relationship with 12 sister, friendly and partnership international cities and these global relationships help to make Wellington a truly international city. This year, Mayor Foster had his first official visit to Seoul and the Council upgraded the relationship with Seoul
to a formal sister city in March 2020. The Council celebrated the 25th anniversary of its sister city relationship with Sakai, and events organised by local community groups and supported by the Council and embassies included Chinese New Year Festival, Japan Festival, Korean Festival, Europe Day, foreign films festivals, international exhibitions and conferences.

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Economic development
finances

Economic development
performance

How it was funded
Most of the economic development activities are paid for by commercial ratepayers, as this covers the cost of tourism promotion, economic grants, and other activities that directly benefit the sector.
Detailed information on funding is on page 318 of Section 4: Financial Statements.

What it cost (operating expenditure $000)

3.1 City promotions and business support	2017/18	2018/19	2019/20	2019/20	2019/20	
	Actual	Actual	Actual	Budget	Variance	
Expenditure	37,051	34,954	31,206	38,108	6,902	

(8,695)	(14,953)	(6,258)

Reduced expenditure due to the closure of venues because of COVID-19.
Revenue	(14,040)	(14,191)
In the last quarter of the year, COVID-19 led to the closure of the sites within the Wellington Venues portfolio which had significant annual revenue impacts.

The following tables provide a summary of how well we performed against Council’s agreed measures: outcome indicator trends and key performance indicators results for the Economic development activity area. Some of the KPIs and Outcomes use information from the Council’s Residents’ Monitoring Survey (RMS), which is undertaken on an annual basis. The survey has a margin of error of +/- four percent.
Outcome Indicators
We use outcome indicators to monitor our city over time, which provides information on trends that may influence our performance, including those outside our control. We do not set targets for outcome indicators though we have a desired trend direction. Of the 36 outcome indicators we monitor,
10 were trending in the desired direction and two had adverse trends. For details see pages 120 to 122.

Total

22,511	23,155	644

Net Expenditure	23,011	20,763
Overall an immaterial impact arising from COVID-19. The surplus arose from operational savings.

Whakatairanga tāone –
City promotions and business support

2	24	10	36

What it cost (capital expenditure $000)

	2017/18	2018/19	2019/20	2019/20	2019/20				
	
Actual	
Actual	
Budget	
Revision	
Actual	Revised budget	Variance to revised budget	Carry forward	
3.1 City promotions and business support	599	738	3,089	1,050	1,111	4,139	3,028	3,352	
Under budget on the St James Theatre fitout upgrade which is dependent on the delayed earthquake strengthening of the building.
Total	599	738	3,089	1,050	1,111	4,139	3,028	3,352	

COVID-19 had a significant impact on many of the indicators in this area, with many marked no trend because the data is significantly
non-comparable to previous years. Some of the positive trends are also based on data up to the end of 2019 so are yet to show the impact of the pandemic.

Key Performance Indicators
We use performance measures to track how well we are delivering services against targets as set out in the 10-year and Annual Plans. The detailed results of Key Performance Indicators are listed in Chapter 9 of this section, see page 140. This page includes data for the last three years to show trends and include variances
explanations for relevant areas where targets have been exceeded or not met.

3.1 Whakatairanga tāone
City promotions and business support

Not met	Within 10%	Exceeded

Total

10

3	5	2

COVID-19 resulted in closure of venues and cancellation of events that meant three targets could not be achieved. Additional support to businesses in response to COVID-19 saw one target exceeded and another had an understated target.

3 Whanaketanga ōhanga Economic development total	3 or 30%	5 or 50%	2 or 20%	10 or 100%	

58	59

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Spotlight on
WellingtonNZ Business Response Team

The Love Local campaign was launched just before
Wellington went into lockdown

COVID-19 has had a significant impact on the Wellington economy and therefore on every area of work of our economic development agency WellingtonNZ.
The COVID-19 Business response team was set up in March as New Zealand went into lockdown. The team’s aim was to support business owners concerned about the future.
Regional business partner programme
This programme provided support for businesses with less than 100 employees across New Zealand by issuing vouchers for specialist professional services. The vouchers were provided by Central Government and 55 percent of support went to businesses in Wellington City.

Some of the highlights were:

557 businesses were contacted by the Business Response team for support
21 Māori businesses have contacted WellingtonNZ; 14 of these businesses have received
voucher funding, totalling $31,160.

Delivered by Creative HQ we invested in the Thrive programme to support about 160 businesses that had worked out their immediate survival but needed support to create a new business plan based on their place in the post-lockdown market.
With the Ministry of Social Development, WellingtonNZ also supported the delivery of a Pop-Up Business School to help people with new business ideas to accelerate their project.

Love Local
The Love Local campaign was launched just before Wellington went into lockdown as WellingtonNZ’s marketing encouraging Consumers to support local business by buying from local companies through campaigns such as:

At Yours – a home delivery programme for hospitality businesses operating at Level #
Wellington Unlocked – a retail business campaign
There’s a Wellington for Everyone – a regional tourism campaign.

International education
While the number of students has reduced, about 3000 remain in the city. WellingtonNZ worked with the institutions to ensure that these students are looked after while they are in Wellington.
Workforce development
COVID-19 has accelerated the work of Government to set-up Regional Skills Leadership Groups. WellingtonNZ collaborated with government agencies to set up the
group for the Wellington Region and now works to deliver better targeted training opportunities for Wellingtonians.
Screen sector
The screen sector was one of the first sectors to restart in Wellington. WellingtonNZ worked with the sector to create a standard set of industry health and safety guidelines that were appropriate to the different COVID-19 response levels and which met the complex needs of location-based filming.

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Te Pūrongo ā-Tau Annual Report 2019—2020	Our performance in detail

4.
Oranga ahurea
Cultural
wellbeing

Suzanne Tamaki
Creative Events Specialist
2020 was hōhā, but also a chance to
do things differently

This chapter explains what we did and how we performed in our Oranga ahurea – Cultural wellbeing portfolio of activities. This includes arts and cultural activities.

63

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

 	

Overview of the year

Our services in this section are centred on people and places; delivering events and activities, city events and festivals, attractions, and galleries and museums.
This year we organised or supported numerous events including a full summer programme (see page 336), which included annual events, cultural festivals and community fairs. We also had to reimagine the Matariki festival for 2020 due to COVID-19. The festival was successfully held in July.

Impact of COVID-19
The following outlines the impact of COVID-19 on our work programme and provides a snapshot of the delays or additional work carried out in response to the lockdown.
COVID-19 and the various Alert Levels had, and continues to have, a significant impact on the activities in this area, but there were some positive outcomes. For example, the attendance numbers for Experience Wellington attractions were hit hard, but virtual visitations
(not previously measured or reported) exceeded expectations as people adapted to the new normal.
In March the arts and event sectors were hit with the reality of the impending pandemic, the Government first announced restrictions on gatherings and then the nationwide lockdown. For the Council this meant:

11 events cancelled or postponed
All 2020 international artist residencies

The announcement of unlimited gatherings under Alert Level 1 meant that Matariki ki Poneke 2020 could take shape as an alternative event and the performing and visuals arts sector were able to reboot theatre, dance, music and exhibition programmes once again.
The Council also added a new priority to the Arts and Culture Fund for applications that can:
support the resilience, sustainability and recovery of organisations in Wellington City; or re-frame and adapt projects, programmes and initiatives in the light of COVID-19; or develop new works to be presented later or to reach audiences in new ways.

Performance summary
This strategy area is responsible for delivering about six percent of Council’s performance measures. Out of the 14 Cultural wellbeing KPIs, two exceeded their targets, four were within 10 percent of
target and eight did not meet their targets.
Utilisation is a common performance indicator of our facilities and services in this area. This was one area that was significantly impacted by the COVID-19 closures including the physical visits to the Experience Wellington locations.

2

4

8

Key performance indicator results

Not met Within 10% Exceeded

Financial summary
Overall operating expenditure was delivered on budget, even though COVID-19 led to closures of sites impacting revenue by up to 38 percent. The Tākina Convention and Exhibition Centre project capital expenditure budget sits under this activity area.

The majority of the outcome indicators in this area that had no trend relate to cultural attraction and event investment success. These all had data that was unavailable or significantly non-comparable because of COVID-19. For example, there were 440,000 fewer visitors to Te Papa during the year as the museum was closed due to COVID-19.
For the full set of outcome and key performance indicators and variance explanations, please see page 116.

2

1

Outcome indicator trends

down,
up,
9 no trend

The project is ahead of schedule and the phasing of the budget, so there was a $6.3m or 37 percent overspend.
For more details on the Cultural wellbeing budget, please see page 67.

from March cancelled

Virtual visitations (not

Net operating expenditure	Capital expenditure

Museums and Galleries closed for two months
– exhibition programmes changed
Three exhibitions at Toi Pōneke Gallery postponed
Conservation of two artworks delayed to next year
Conference in Canberra on Art Collection Management – cancelled

previously measured or reported) exceeded expectations as people
adapted to the new normal

On Target

Underspend	Overspend

On Target

Underspend	Overspend

Variance: On budget	Variance: $6.3m or 37% over spent

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Te Pūrongo ā-Tau Annual Report 2019—2020

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Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

4.1 Ngohe toi, ahurea hoki
Arts and cultural activities

Cultural wellbeing
finances

What we do
In this area we provide opportunities to develop the city’s cultural scene to build engaged and curious communities, and support for galleries and museums, community arts and cultural events, and arts partnerships. We develop and deliver a range of city events, and support community events.
Some of the activities in this area are managed by Council-controlled organisation, Wellington
Museums Trust that trades as Experience Wellington. This organisation is profiled on page 109 in the Council-controlled organisations chapter, including details of its board and governance structure.
Many of our events in the last months of the year were cancelled or postponed. However before that Wellington had another full summer programme, see page 33
Key projects
Some of the activities we did in our Arts and cultural activities area this year were:
Events, arts and grant funding
Arts and Culture Fund: 73 applications funded; total $358,710. In 2019/20, this also included the Professional Performing Arts Fund.
Creative Communities Funding Scheme: administered by the Council, in partnership with Creative New Zealand, allocated a total of $143,091.75 to 42 projects
through two funding rounds during the year.
We also supported community, suburban, and cultural events such as the 18th Johnsonville Lions Community Christmas Parade, Out in the Park, Diwali, and Bowlzilla; hosted 12 exhibitions and four artist residencies at Toi Pōneke Gallery, commissioned eight new PakiTara-toi art on walls projects (murals), and acquired 12 new artworks for the City Art Collection.
The ReCut (Kumutoto) 2019 event was a finalist in the Best Local Government Event 2019 category at the New Zealand Event Awards.

Matariki ki Poneke 2020
When the lockdown was put in place, it created uncertainty for this key winter festival. First it was not clear how
long measures would be in place that would limit crowd sizes. The key Matariki event, Ahi Kā, attracts thousands to the waterfront therefore the challenge in 2020 has been to reimagine and re-design the Matariki festival in rapid response to the pandemic.
This led to re-thinking the celebration into a series of high-quality contemporary events from immersive online experiences to safe physically distanced events that included opportunities for the local community’s participation and engagement, and provided employment opportunities to 250+ local creatives, artists, businesses and performers.
The move to Alert Level 1 in June also meant crowds were once again allowed, so the festival was reimagined again to create one that had the best of physical and online events. The festival was held in July 2020.
However, COVID-19 affected the planning and preparation of the Matariki fireworks display and the event had to
be postponed. Another date is yet to be decided.
Experience Wellington highlights
Suffrage in Stitches at Wellington Museum was opened on 1 August 2019 by the Hon. Carmel Sepuloni, Associate Minister of Arts, Culture and Heritage. The first two weeks saw more than 5,300 people visit the exhibition.
Get a Hat, Get a Head opened in early September 2019 at Wellington Museum and was the result of
collaboration between Wellington Museum, FLUX Co-op and five creative spaces: Pablos Art Studio, Mix, Arts on High, Vinnies Re Sew and The Shed Project Kāpiti. The exhibition opening was timed to coincide with Mental Health Awareness Week and Disability Pride Week.
In quarter two, Space Place hosted a delegation from the Ministry of Space Industries (Australian Government). One outcome of this initiative is an interest in exploring links with the Stromlo Observatory in Canberra.

How it was funded
Services in this activity area are funded through a mixture of general rates, targeted rates, user charges and other revenue.
Detailed information on funding is on page 319 of Section 4: Financial Statements.

What it cost (operating expenditure $000)

4.1 Arts and cultural activities	2017/18	2018/19	2019/20	2019/20	2019/20	
	Actual	Actual	Actual	Budget	Variance	
Expenditure	21,256	23,268	22,478	22,595	117	
Revenue	(746)	(811)	(639)	(1,030)	(391)	
Net Expenditure	20,510	22,457	21,839	21,565	(274)	

What it cost (capital expenditure $000)

2017/18   2018/19   2019/20   2019/20

Actual	Actual	Budget	Revision
4.1 Arts and cultural	443	4,145	16,941	237
activities expenditure	2019/20				
	
Actual	Revised budget	Variance to revised budget	Carry forward	
	23,536	17,178	(6,358)	(4,221)	
The Convention Centre project is forecast to deliver on budget for the completion of the project with the current variance being due to the phasing of the budget.

Total	443	4,145	16,941	237	23,536	17,178	(6,358)	(4,221)	

66	67

Te Pūrongo ā-Tau Annual Report 2019—2020

Cultural wellbeing
performance
The following tables provide a summary of how well we performed against Council’s agreed measures: outcome indicator trends and key performance indicators results for the Cultural wellbeing activity area. Some of the KPIs and Outcomes use information from the Council’s Residents’ Monitoring Survey (RMS), which is undertaken on an annual basis. The survey has a margin of error of +/- four percent.
Outcome Indicators
We use outcome indicators to monitor our city over time, which provides information on trends that may influence our performance, including those outside our control. We do not set targets for outcome indicators though we have a desired trend direction. Of the 12 outcome indicators we monitor, two were trending in the desired direction and one had an adverse trend. For details see pages 114 to 156.

Our performance in detail

The key Matariki event, Ahi Kā, attracts thousands to

Total
4 Oranga ahurea - Cultural wellbeing	1	9	2	12
Although the National Reputation Survey was conducted during the COVID-19 Alert Level 1 restrictions, positive trends were reported for New Zealand’s perceptions of Wellington as an “event capital” and having a “culturally rich and diverse arts scene”. Unfortunately, these results are not mirrored by Wellingtonians (see detail KPIs in Chapter 9 of this section).

Key Performance Indicators
We use performance measures to track how well we are delivering services against targets as set out in the 10-year and Annual Plans. The detailed results of Key Performance Indicators are listed in Chapter 9 of this section, see page 114. This page include data for the last three years to show trends and include variances

explanations for relevant areas where targets have been exceeded or not met.

4.1 Ngohe toi, ahurea hoki Arts and cultural activities	

8	Not met	

4	Within 10%	

2	Exceeded	Total

14	
COVID-19 closures of the Experience Wellington physical locations meant visitor numbers were below target for six out of seven measures. However, Capital E exceeded targets and virtual visitation spiked across sites.

4 Oranga ahurea - Cultural wellbeing total	8 or 57%	4 or 29%	2 or 14%	14 or 100%	

68

the waterfront

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Spotlight on
Post COVID-19 lockdown support for music venues

We are able to put on shows when so many other places around the world can’t …

Four of Wellington’s independent live music venues were given a helping hand with funding to ease the blow dealt by the COVID-19 lockdown and restrictions.
San Fran, Meow, Rogue and Vagabond, and Valhalla were given a cash injection in June from Wellington City Council to help with operational costs to ensure they could keep the lights on and doors open, and provide paid opportunities for performers. With this funding we supported the venues and the arts sector at the same time.

Senior Arts Advisor Felicity Birch said independent music venues played an important role in the community.
They support the city’s local music scene by providing a variety of spaces for musicians, comedians and other performers to connect with audiences.
“This support for the four venues ensured that a diverse range of live music was offered to Wellington audiences from local groups and musicians who had patiently waited for lockdown restrictions to ease,” Felicity said.
"The package from the Government offered long-term support for the music industry, but the Council support ensured that local venues could keep going until that kicked in.”
The grants to support independent music venues were redirected from the 2019/20 venue
subsidy – funding that would normally be used to help arts and community groups access Council venues but was unspent due to the lockdown.
Meow, on Edward Street, was the recipient of
$25,000, which owner Rahine O’Rielly said came as a relief and she was grateful for it.

“For a long time, these music venues have not been included in any areas of funding, so it’s really nice to be acknowledged … [by] the Council and to know that they see us as important to the vibrancy of the city.”
Rahine said the financial impact of COVID-19 had been worrying, but small business owners were generally resilient and used to tackling challenges. Always
the optimist, she embraced the unexpected break away from Meow to enjoy time with her family.
To date, the Council has also granted $25,000 to San Fran, $10,000 to Rogue and Vagabond, and $7,000 to Valhalla, to help with overhead costs and to support live events and local artists post lockdown.
Rahine used the $25,000 Council funding to support a new weekly jazz series featuring local musicians. The gigs are also live streamed online.
“New Zealand is so lucky that we are able to put on shows when so many other places around the world can’t. I feel so privileged to be here,” Rahine said.
She thanked the community for its “amazing outpouring of support” during a challenging time and encouraged people to venture out to shows and to continue being kind to one another.

Rahine O'Riley, Meow

70	71

Te Pūrongo ā-Tau Annual Report 2019—2020	Our performance in detail

5.
Kaupapa

Bobby Bir
Tenancy Advisor
Many of our vulnerable tenants needed extra help

pāpori me ngā mahi a rēhia
Social and recreation
This chapter explains what we did and how we performed in our Kaupapa Pāpori me ngā Mahi a Rēhia
– Social and recreation portfolio of activities.

73

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Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

 	

Overview of the year

Our services in this area include everything from libraries and sportsfields to social housing, community centres, and our regulatory public health functions such as liquor licensing.
We delivered several major new projects during the year, including opening Waitohi – the new community hub and library in Johnsonville. We also opened the second of

Impact of COVID-19
The following outlines the impact of COVID-19 on our work programme and provides a snapshot of the delays or additional work carried out in response to the lockdown.
COVID-19 and the various Alert Levels had, and continues to have, a significant impact on this area in different ways. For example, some services had to
close during lockdown levels, but other were boosted to meet the increased need in the community.

During Level 4 and 3 public facilities had to be closed. For the Council this included our swimming pools, libraries, playgrounds, and the city’s public toilets, except those used by the street community. Most community centres were also closed, except for Newlands and Linden, which provided food banks and food distribution throughout the lockdown, with the assistance of volunteers.
Programmed work on our facilities was delayed or had to be rescheduled. For example, the openings of Te Awe library and Te Pātaka library

our new ‘pop-up’ libraries in the central city, completed the Museum Stand upgrade at the Basin Reserve, and constructed new public toilets at Evans Bay Marina.
We also made improvements to the Karori Recreation Centre and construction started on the Alex Moore sports facility.

Many of the regional, national and international sport and recreation events were cancelled or postponed due to the lockdown. Once we went to Level 2, we helped the sector plan for shorter winter seasons.
We provided financial help for the communities and businesses in this area, including:
rent holidays for sport and recreation lessees and waterfront lease and license holders from late March to 30 June;
free sport and recreation facility hire from 13 May to 30 June;
an addition $1m in grant funding for recovery projects;
reduced application and inspection fees for public health services; and
provided refunds for alcohol licence fees for the final quarter of the year.
In partnership with Central Government and

Performance summary
This strategy area is responsible for delivering about 31 percent of Council’s performance measures.
Out of the 71 KPIs, 11 were exceeded, 28 within 10 percent of target and 32 were not met.
Utilisation is a common performance indicator for the facilities and services in this area and all were
significantly impacted by COVID-19 closures, including swimming pool use and physical library visits.

11

28

32

Key performance indicator results

Not met Within 10% Exceeded

Financial summary
This year, there was 25 percent revenue loss in this area which was partially offset by deferred maintenance
and lower operating costs. However, this deficit is obscured by a 2018/19 budget reallocation of $17m [of community support expenditure as reported in the 2018/19 Annual Report, for release of the Deed of Grant with the Crown for Arlington], resulting in a positive net overall operating position of 18 percent.

The majority of the 19 outcome indicators in this area had no trend. Many relate to measures reliant on data from our Residents Monitoring Survey, which was conducted during COVID-19 restrictions. Perceptions and experiences of Wellington are likely to have been impacted because
of the effects of COVID-19 on the activities in this area.
For more information on our key performance indicators and variance explanations, see page 116.

1

1

Outcome indicator trends

1 down,
1 up,
17 no trend

The capital expenditure programme experienced delays in the opening of new libraries, upgrades to community centres and rephasing of the Alex Moore Park project. These resulted in 26 percent under spend that will be For more details on the Social and recreation budget and variance explanations, see pages 79 to 80.

collection and distribution centre were delayed because construction could not continue in Level

community partners we helped 60 people into emergency accommodation, including tourists

Net operating expenditure	Capital expenditure

Some of our renewal work (eg on playgrounds)
could also not be completed before 30 June and has been carried over into next year.
We contacted all our social housing tenants to confirm their wellbeing and understand any welfare/support needs. We set up regular, ongoing calls to targeted housing tenant groups who were identified as particularly vulnerable or who requested regular contact.

who could not return home or travel.
We supported DCM and Wellington City Mission to set up two new transitional housing facilities: Te Pāapori and Te Paamaru, and supported 120 individuals into shelter.

On Target

Underspend	Overspend

On Target

Underspend	Overspend

Variance: $18.4m or 18% under spent	Variance: $11.2m or 26% under spent

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

 	

Whakatairanga mahi ā rēhia
Recreation promotion
and support

Tautoko hāpori
Community support

What we do
In this area we encourage active and healthy lifestyles and enable participation in sporting and other group activities. We support this by providing swimming pools, recreation centres, sportsfields, playgrounds and marinas, and delivering recreation programmes in our facilities.
Some services for this activity are delivered by the Basin Reserve Trust and the Wellington Regional Stadium Trust. These organisations are profiled on pages 106 and 111 in the Council-controlled organisations chapter, including details of their boards and governance structures.
Key projects
Some of the highlights in our Recreation promotion and support activity this year include:
Alex Moore Park redevelopment underway
The Council entered into a Partnering Agreement with Alex Moore Park Sport and Community Inc (AMSCI) to construct a new sport hub facility on the upper field at Alex Moore Park. The Council will lead the development of the building, which will be owned by Council.
Armstrong Downs has been awarded the construction contract. Demolition of the Olympic Harriers and Athletic Club building and the Johnsonville Cricket Club building is complete. Construction of the new hub facility has started and is expected to be completed in early 2021.
Museum Stand upgrade complete
The Basin Reserve Trust completed the seismic strengthening and refurbishment of the Museum Stand. The grandstand was opened to the public on 21 February 2020 for day one of the Black Caps versus India test match. It had been closed since 2012.
The building works for the interior were completed as planned after the test match finished. The building is now the home of the Cricket Wellington offices. It will also provide a fully refurbished home for the New Zealand Cricket Museum, and
is expected to re-open in February 2021.

Looking after our facilities
We carried out several renewals to facilities, including the renewal of four playgrounds and another three were substantially advanced, but behind schedule due to COVID-19. We also upgraded Keith Spry Pool to incorporate it into Waitohi and installed a new
spa and sauna area. We made improvements to the Karori Recreation Centre to include a new front-of- house area, improved access for customers and a general refresh of the hall and all community areas.
We also: built a new fenced dog park on Mt Albert; renewed the artificial turf at Te Whaea and included a shock pad; and renewed an artificial turf and installed new lighting at the National Hockey Stadium.
ClubActive growing
There was continued growth in the membership numbers for ClubActive, our gym and swimming pool membership. As at 30 June we had more than 2650, which is our largest membership base on record.
Grant funding
Social and Recreation Fund: 114 applications funded; totalling $1,869,148. In June 2020 additional funding was allocated for programmes and interventions related to COVID-19,
this included re-prioritised funding.
Sportsville Partnership Feasibility Fund:
two grants totalling $35,259.

What we do
In this area we aim to develop highly liveable, safe and inclusive communities by providing community support initiatives, access to housing for those in need, and operate community facilities such as community centres and libraries to support overall quality of life.
Key projects
Some highlights in our Community support activity include:
Libraries
This year in our libraries there was a 50 percent increase in the use of online library resources and 3.9m library website visits.
Central city library services
The Council closed the Central Library building to the public on 19 March 2019 and, while preparing the options for the way forward, the Council worked hard in 2019/20 to ensure library services continued in the central city for Wellingtonians.
Two of the three new central city libraries opened to the public in 2019. Arapaki Manners Library and Service Centre opened on 28 May 2019 and He Matapihi Molesworth Library on 9 October 2019. The third and largest central city library, Te Awe Library, opened in July 2020. Te Pātaka, the Collection and Distribution Centre, opened to staff in June 2020. The last two were delayed due to COVID-19.
Waitohi
The Waitohi Community Hub opened in Johnsonville in December 2019. The hub incorporates the Keith Spry Pool, Johnsonville Library, Waitohi Kindergarten, Common
Ground Café, and the Johnsonville Community Centre. Since opening, the hub has proved to be a popular destination
for Johnsonville residents and the surrounding suburbs.
Community spaces
Over 283,000 visitors attended events and meetings at the Council’s community spaces this year. The Linden Social Centre also became Wāhi Kōrero Linden Community Centre and opened its doors to Kaibosh food delivery and Kai Kitchen.
Progressing the Karori Events Centre
This project originated as part of the 2001 Karori Town Centre upgrade planning. Over the years the community’s

Karori Events Trust raised $1.985m and started the build. However, the trust was not able to complete the fit-
out stage, after completing the shell of the building.
To progress the project, Council agreed to accept the gift of the Karori Event Centre and to approve
$2.2m for its completion and on-going operations enabling it to function as a community hall and a new base for Footnote New Zealand Dance.
City Housing
This year we completed all insulation upgrades to our City Housing units and increased access to digital devices and literacy for City Housing tenants through the Digital Inclusion Alliance.
In March, Council approved public consultation on the City Housing Social Housing Policy, which included changes to the rent setting policy. Consultation commenced in March but was put on hold just prior to the COVID-19 lockdown. Consultation including a series of public hearings recommenced and concluded post-lockdown, with the updated policy
options paper to be presented to Council in 2020/21.
Housing upgrade project (HUP)
City Housing has undertaken a budget cost estimate on the proposed capital programme of upgrade to the City Housing portfolio during Phase 2 of the HUP. This programme was mandated in 2017 by the Council under the Strategy Housing Investment Plan, which
combines the funding for both the upgrades and renewals budgets for the portfolio from 2017 until 2028.
HUP is also required to meet the Deed of Grant signed in 2007 between the Crown and the Council. The Crown has granted $220m to the Council, and we have committed to match $180m towards the $400m 20-year upgrade programme of the City Housing portfolio. This commits the Council to stay in Social Housing until 2037.
As a result of a recent detailed condition and deed of grant compliance survey of half of the portfolio, the Council has identified significant cost increases.
Potential options will be prepared for the Council to put forward for the Long-term Plan review in 2020/21.

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Hauora/haumaru tūmatanui
Public health and safety

What we do
In this area we seek to address the city’s public health and safety needs. This activity covers our public health regulatory functions like dog and animal control, food premises and alcohol licensing. The activity also covers the city’s public conveniences, and our funding support for agencies in the city that work towards improving the health, safety and wellbeing of our communities.
Key projects
Some of the highlights in our Public health and safety activity include:
Evans Bay Marina Car Park toilets
New public toilets were installed at Evans Bay Marina carpark to support responsible freedom camping.
The facilities were opened in January 2020.
Regulatory services
During the year Council’s regulatory functions continued to deliver its core services. This included issuing 273 alcohol premises licences, 244 special alcohol licences issued for events, 1,182 Managers certificates issued, 1,998 food premises registered, 256 non-food premises registered, 12,328 dogs registered, and 2,118 dog and stock complaints responded. We reduced application and inspections fees for public health services to support the

Social and recreation
finances
How it was funded
Services in this activity area are funded through a mixture of general rates and user charges.
Detailed information on funding is on page 320–322 of Section 4: Financial Statements.

What it cost (operating expenditure $000)

5.1 Recreation promotion and support	2017/18	2018/19	2019/20	2019/20	2019/20	
	Actual	Actual	Actual	Budget	Variance	
Expenditure	42,069	43,767	42,337	43,506	1,169	

(9,193)	(12,247)	(3,054)

Reduction in costs due to deferred maintenance and lower operating costs during the COVID-19 lockdown.
Revenue	(11,710)	(11,980)

33,144	31,259	(1,885)

Significant impact in the last quarter due to COVID-19, arising from the closure of swimming pools, fitness centres and various measures Council undertook to support the community during this time.
Net Expenditure	30,359	31,787
Over budget due to COVID-19 related loss of revenue, not offset by savings in the deferred maintenance and lower operating costs.

5.2 Community support
Expenditure	
56,751	
74,134	
66,214	
83,494	
17,280	

(27,204)	(23,814)	3,390

Favourable due to the recognition of the disposal of Te Mara (Arlington) sites 1 and 3 to Kāinga Ora in the 2018/19 financial year, but this was budgeted in the 2019/20 financial year.
Revenue	(38,087)	(24,675)

39,010	59,680	20,670

Timing around the receipt of rental income associated with the Te Mara (Arlington) site 2 social housing complex.
Net Expenditure	18,664	49,459

5.3 Public health and safety
Expenditure	
16,538	
16,816	
17,496	
17,337	
(159)	

Favourable due to the recognition of the disposal of Te Mara (Arlington) social housing sites 1 & 3 to Kāinga Ora in the 2018/19 financial year (which was budgeted in the 2019/20 financial year) and rent being ahead of budget.

hospitality sector during COVID-19 restrictions.
Alcohol Fees Bylaw implemented
The Alcohol fees bylaw was approved and came into effect on 1 October 2019. The Bylaw enables us to set fees for alcohol licence applications instead of only being able to use the default fees set by the Sale and Supply of Alcohol (Fees) Regulations 2012.
Higher fees were set so the user pays more rather than this activity being funded through rates. Future fee increases were foreshadowed, subject to ongoing consultation with industry and reviews of licensing
processes. This was initially earmarked to happen during the year but was postponed due to COVID-19.

Otto enjoys the off leash area at Island Bay Beach

(4,469)	(4,653)	(184)

Increased costs in relation to Council's response in support of the community during the lockdown period.
Revenue	(4,339)	(4,143)

13,027	12,684	(343)

Council waived fees during the COVID-19 lockdown period which reduced revenue.
Net Expenditure	12,199	12,673
Increased expenditure coinciding with reduced income over the lockdown period.

Social and Recreation Total		
Expenditure	115,358	134,717	126,047	144,337	18,290	
Revenue	(54,136)	(40,798)	(40,866)	(40,714)	152	
Net Expenditure	61,222	93,919	85,181	103,623	18,442	

78	79

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Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Social and recreation
performance

What it cost (capital expenditure $000)

	2017/18	2018/19	2019/20	2019/20	2019/20				
	
Actual	
Actual	
Budget	
Revision	
Actual	Revised budget	Variance to revised budget	Carry forward	
5.1 Recreation promotion and support	6,529	7,188	13,521	1,817	14,899	15,338	439	1,627	
5.2 Community support	32,725	21,139	19,201	2,775	13,976	21,976	8,000	8,261	
Under budget primarily due to the delayed opening of the Libraries (COVID-19 delays through lockdown), Social Housing (will be finalised as a part of the sustainability analysis) and Community Halls programmes of works and this will be reviewed as part of the LTP planning process.

2,776	5,590	2,814	2,602

5.3 Public health and safety	999	1,698	3,492	2,098
Under spend relates to delays caused by unforeseen additional work and re-working of the Alex Moore Park Sports Hub project.

The following tables provide a summary of how well we performed against Council’s agreed measures: outcome indicator trends and key performance indicators results for the Social and recreation activity area. Some of the KPIs and Outcomes use information from the Council’s Residents’ Monitoring Survey (RMS), which is undertaken on an annual basis. The survey has a margin of error of +/- four percent.
Outcome Indicators
We use outcome indicators to monitor our city over time, which provides information on trends that may influence our performance, including those outside our control. We do not set targets for outcome indicators though we have a desired trend direction. Of the 19 outcome indicators we monitor, one was trending in the desired direction and one had an adverse trend. For details see pages 124 to 125.

Total

Social and Recreation Total	40,253	30,025	36,214	6,690	31,651	42,904	11,253	12,490	

Kaupapa Pāpori me ngā Mahi a Rēhia Social and Recreation

1	17	1	19

The negative trend was in relation to residents perception that Wellington offers a wide range of recreation activities. The one positive trend was an increase in residents’ who stated they were active for 2.5 hours or more each week.
Key Performance Indicators
We use performance measures to track how well we are delivering services against targets as set out in the 10-year and Annual Plans. The detailed results of Key Performance Indicators are listed in Chapter 9 of this section, see 142 to 146. These pages include data for the last three years to show trends and include variances explanations for relevant areas where targets have been exceeded or not met.

Total

40

Not met	Within 10%	Exceeded
Recreation promotion and support	24	10	6
The majority of not met measures in this area, and the two below, were in relation to utilisation of services or visits to facilities, including sports fields, libraries and swimming pools.

22

Community Support	6	12	4
Most KPIs in this area are on target. There were also good news stories in e-Library issues being 88% above target and visits to the Library website up 23%.

9

Public health and safety	2	6	1
This area was the least impacted by COVID-19 or other challenges through the year and remains on-track, which is in line with the previous year’s results. The two not met measures relate to alcohol or food licence inspections, which were unable to be carried out because of the Level 4, 3 and 2 restrictions.

5. Kaupapa Pāpori me ngā Mahi a Rēhia Social and Recreation total	32 or 45%	28 or 39%	11 or 16%	71 or 100%	

80	81

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Spotlight on
Helping our vulnerable during lockdown

We responded quickly to the urgent need to support people without accommodation

When the COVID-19 lockdown was announced, we quickly launched a coordinated approach aimed at ensuring
no-one slipped through the gaps and there was some long-term security for our most vulnerable residents.
Providing shelter
A collaboration between the Council’s welfare team, the Ministry of Social Development (MSD), Housing Urban Development (HUD) and Wellington City Mission resulted in a new facility (Te Paapori – which means community) opening in a private property with 38 self-contained units secured until the end of September. Mitre 10
Mega also provided fridges and freezers for each unit to help safely accommodate residents in self-isolation.
The cost of the accommodation was covered by MSD and HUD. The Wellington City Mission managed Te Paapori as a Kaupapa Māori service, with 24/7 staffing, food and
support functions. The success of the units means a long- term solution for this facility is now being worked on.
The Wellington Night Shelter usually houses about 40 men each night, with communal and dormitory living which didn’t allow for social distancing.
By relocating 20 of their residents to Te Paapori, where they had their own self-contained space to isolate, the remaining Night Shelter guests had the space to spread out and have separate bedrooms while we were in Alert Level 4 lockdown.
We also identified the public toilets used by the street community and increased the cleaning of them to ensure they were safe in a pandemic lockdown situation.
We also supported families and individuals in need of emergency accommodations during Level 4 and 3. These 60 people ranged from New Zealanders who were unable to travel during lockdown, tourists who couldn’t return home or travel and foreign nationals who were no longer able to work in New Zealand.
Between our efforts and those of our community partners, more than 120 individuals were supported into shelter during our response.

Food support
Assisting people to access food was also a priority and our response leveraged off our relationships with existing partners. The need for support was high and immediate.
This included supporting those who were unable to get out or shop online, were in financial difficulty, and those who would normally access food assistance but were unable to.
Our partners included, Wellington City Mission, Salvation Army, St Vincent de Paul, Home of Compassion Soup Kitchen, Kiwi Community Assistance, Kaibosh, local food banks and the Student Volunteer Army.

The Soup Kitchen and Wellington City Mission provided more than 15,264 takeaway meals during Level 4 and 3. This was an increase of 283 percent compared to the same time last year.
Food rescue service Kiwi Community Assistance rarely processes more than a tonne of food a day. During Level 4, it was processing up to three tonnes of food each day.
Kaibosh food rescue processed more than 52,000kg of food, or the equivalent of 148,600 meals.

Manda Grubner, Welfare Team

82	83

Onur Oktem
Senior Advisor Planning
We thrived
on the challenge

Te Pūrongo ā-Tau Annual Report 2019—2020

6.
Tāone tupu ora
Urban

Our performance in detail

development

This chapter explains what we did and how we performed in our Tāone tupu ora – Urban development portfolio of activities.

85

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Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

 	

Overview of the year

Our services in this section includes urban planning, heritage and public spaces development, and building and development control.
We continued progress on the city’s draft Spatial Plan that will outline how and where the city will grow, upgraded the Grey Street pocket park and continued our programme of work on earthquake prone buildings. We also continued with strengthening of the Town Hall and carried out our regulatory building and development control functions.

Impact of COVID-19
The following outlines the impact of COVID-19 on our work programme and provides a snapshot of the delays or additional work carried out in response to the lockdown.
While COVID-19 materially impacted the use and delivery of the services and facilities in this area, not all were equally affected.

We delayed engagement on the draft Spatial Plan for Planning for Growth until after lockdown to ensure the community could be engaged without any restrictions.
We decided not to proceed with proposed resource and building consent fee increases for the year to support the sector and Wellingtonians. This will be revisited as part of the 2021-31 Long term Plan.
We offered refunds for resource and building consent fees where plans had changed because of COVID-19 on the basis that these were surrendered or cancelled. There was negligible uptake on this support.
We initiated the Innovating Streets tactical urbanism

We delayed engagement on the draft Spatial Plan for Planning for Growth until
after lockdown to ensure the community could be engaged without any restrictions.

Performance summary
This strategy area is responsible for delivering eight percent of Council’s performance measures. Out of the 18 KPIs, three were exceeded, 10 were within 10 percent of target and five were not met.
This year it continued to be challenging to achieve the timeliness targets in our consenting and compliance service delivery area. We have also seen a decline in residents’ satisfaction with retaining and valuing heritage items, and elements of city attractiveness. Residents’ perceptions
of the city and suburbs may have been influenced by the timing of the survey, shortly after COVID-19 lockdown,

3

5

10

Key performance indicator results

Not met Within 10% Exceeded

Financial summary
The 6.2 Building and development activity area was over budget on expenditure and under budget on revenue causing 54 percent net operating expenditure overspend in this area – translating to a 23 percent overspend overall. The reduction in economic activity and therefore revenue is directly linked to COVID-19 lockdown restrictions.

as there has been an increase in people appreciating their suburban public areas.
Out of the eight outcome indicators that have a positive trend, the majority relate to growth of the population in the central city, however there is a negative trend in
measures about the affordability of housing. Of the 23 with no trend, the majority are new measures meaning there is insufficient data to determine a trend at this stage.
For the full set of outcome and key performance indicators and variance explanations, please see page 116.

8

6

Outcome indicator trends

6 down,
8 up,
23 no trend

Both Urban development activity areas experienced delays causing underspends in the capital works programme, resulting in $28m being carried forward.
See page 22 for descriptions of projects being carried forward and for more details on the Urban development budget, please see page 90.

project, but due to New Zealand’s relatively quick

Net operating expenditure	Capital expenditure

recovery from the pandemic, many of these projects are now on hold or being re-thought now that
social distancing measures are no longer in place.

On Target

On Target

Underspend	Overspend	Underspend	Overspend
Variance: $4.6m or 23% overspent	Variance: $22.9m or 47% under spent

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

 	

Whakamahere tāone, whakawhanake wāhi tuku
Urban planning, heritage & public spaces development

Whakahaere hanga whare
Building and development control

What we do
In this area we seek to make sure the city remains liveable even as our population grows and challenges around seismic risk and climate change increase.
We want housing to remain affordable. We also want to maintain the city’s unique character, protect heritage, and to improve its resilience so it is better able to withstand future shocks and stresses.
We carry out spatial planning work and public space improvement work to achieve those goals.
Key projects
Some of the highlights in our urban planning, heritage and public spaces activity include:
Draft Spatial Plan
The draft Spatial Plan provides for the growth of the city over the next 30 years while also protecting the things that make Wellington special. The consultation and background data was prepared during the year, but consultation was delayed for several months
due to lockdown. The Spatial Plan will directly inform the development of the Wellington Regional Growth Framework, and the District Plan review.
Grey St Pocket Park
Grey St forms part of the main pedestrian city-to-sea link from the Cable Car on Lambton Quay to Queens Wharf. The pedestrian area at the Lambton Quay end had been upgraded many years ago but had become tired and run down. A review and refocus of the space and how it was used was undertaken, and an
upgrade was carried out that included paving, seating, lighting and planting. The project was completed
on time and on budget in quarter one of 2019/20.
Earthquake prone buildings
Between October 2014 and February 2020, 65 earthquake prone heritage buildings were removed from the Earthquake Prone Building List. We completed the process of issuing new notices to priority buildings as required by legislation, and have started to ramp up activity for a spike in expired notices in 2027. With about

550 Wellington City buildings requiring attention, we anticipate that activity associated with this programme will have a short-term impact on the
running of the city, but ultimately will leave a legacy of improved resilience and higher quality of building stock.
Built Heritage Incentive Fund: 11 applications funded; total $466,000, average grant size
$42,363.64, largest $160,000, smallest $4,000.
Town Hall
The Town Hall project continued this year, with contractors Naylor Love established on site in May 2019. During the year the existing basement structure and ground floor slab, including the auditorium was removed, the Municipal Office Building annex and West Hall structures were demolished and temporary propping installed, and the placement of new piles is underway. COVID-19 has delayed the project and the current estimate for completion is the third quarter of
2023, however uncertainty with material and equipment supply from overseas is requiring ongoing monitoring.

We also want to maintain the city’s unique character, protect heritage, and to improve its resilience so it is better able to withstand future shocks and stresses

What we do
In this area we undertake regulatory functions for the built environment, including issuing Building and Resource consents.
Some of the highlights in our Building and Development Control activity area this year are:
Key projects
Building consents
This year, 1428 building consents were issued for Wellington City, an increase of 450 on last year.
We achieved and maintained our accreditation as a building consent authority, as a result of our two-yearly assessment by International Accreditation New Zealand. Without renewing our accreditation as a Building Consent Authority, Wellington City Council would not be able to undertake its building control functions.
The first half of year was the most productive for the last five years in terms of both consents granted and inspections conducted per officer. Inspections for the year also ended at an all-time high (30,000) and returned to near normal volumes post-
COVID. A focus on timeliness during lockdown saw significant improvement on statutory timeframes.
Resource consents
The number of resource consents trended down with a total of 681 for this year. One of the major applications in the year was the resource consent which was granted for a new National Archives building in Aitken Street following a publicly notified process. Overall, the
team continued to achieve well in terms of customer satisfaction consistently reaching a satisfaction rate of more than 90 percent over the year. We also revamped the resource consent web pages and created the ability to receive online resource consent applications.

Overall, the team continued to achieve well in terms

PHOTO
Aitken St?

of customer satisfaction consistently reaching over a 90 percent satisfaction rate over the year

1428 building consents were issued in Wellington this year

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Urban development
finances

Urban development
performance

How it was funded
Services in this activity area are funded through a mixture of general rates, fees and charges, and grants and subsidies.
Detailed information on funding is on pgs 323 to 324 of Section 4: Financial Statements.

What it cost (operating expenditure $000)

6.1 Urban planning, heritage and	2017/18	2018/19 public spaces development	2019/20	2019/20	2019/20	
Actual	Actual	Actual	Budget	Variance	
Expenditure	8,338	10,086	10,979	11,093	114	
Revenue	(59)	(163)	(73)	(22)	51	
Net Expenditure	8,280	9,924	10,906	11,071	165	
6.2 Building and development control
Expenditure	
21,064	
20,623	
25,552	
22,976	
(2,576)	
Higher professional fees due to the complexity and volume of reviewing applications and higher associated personnel costs.

The following tables provide a summary of how well we performed against Council’s agreed measures: outcome indicator trends and key performance indicators results for the Urban development activity area. Some of the KPIs and Outcomes use information from the Council’s Residents’ Monitoring Survey (RMS), which is undertaken on an annual basis. The survey has a margin of error of +/- four percent.
Outcome Indicators
We use outcome indicators to monitor our city over time, which provides information on trends that may influence our performance, including those outside our control. We do not set targets for outcome indicators though we have a desired trend direction. Of the 37 outcome indicators we monitor, eight were trending in the desired direction and six had adverse trends. For details see pages 126 to 128.

Total

(11,990)	(14,186)	(2,196)

Revenue	(13,523)	(13,720)

13,562	8,790	(4,772)

The drop-in economic activity in the Building and Resource consent areas during the lockdown period resulted in decreased revenue.
Net Expenditure	7,541	6,902
Higher professional fees and personnel costs and COVID-19 impacts on revenue.

Urban Development Total		
Expenditure	29,402	30,709	36,531	34,069	(2,462)	
Revenue	(13,582)	(13,883)	(12,063)	(14,208)	(2,145)	
Net Expenditure	15,820	16,826	24,468	19,861	(4,607)	

What it cost (capital expenditure $000)

Tāone tupu ora – Urban development	6	23	8	37
Positive trends for growth in number and value of building consents, population and attractiveness of suburbs. Negative trends for attractiveness of central city, safety concerns and heritage measures.

Key Performance Indicators
We use performance measures to track how well we are delivering services against targets as set out in the 10-year and Annual Plans. The detailed results of Key Performance Indicators are listed in chapter 9 of this
section, see pages 147 to 148. These pages include data for the last 3 years to show trends and include variances explanations for relevant areas where targets have been exceeded or not met.

2017/18   2018/19   2019/20   2019/20

Actual	Actual	Budget	Revision

6.1 Urban planning, heritage	12,287	6,046	10,597	2,742
& public spaces development	2019/20				
	
Actual	Revised budget	Variance to revised budget	Carry forward	
	3,250	13,339	10,089	10,089	

Urban planning, heritage & public spaces development

Not met	Within 10%	Exceeded

Total

8

3	2	3

22,349	35,142	12,793	17,888

Significant under spend due to later than planned signoff on Frank Kitts Park. The North Lambton Quay project has been delayed to be aligned with the LGWM Golden Mile work stream and delays in the laneways programme to the next financial year.

All the results that were exceeded or not met stem from the Residents’ Monitoring Survey. Public spaces achieved good increases whereas heritage and character measures dropped.

Building and development control

7,216	8,563	33,025	2,117

10

6.2 Building and development control	2	8	0

Under spending due to the earthquake strengthening programmes for the St James Theatre and the Town Hall being behind (partially due to the impacts of COVID-19).

Timeliness for building consent continuing previous years decline. Processing of LIMs was within target for three out of four quarters.

Urban development total	19,504	14,610	43,622	4,859	25,599	48,481	22,882	27,977	

 	
6 Tāone tupu ora - Urban development total	5 or 28%	10 or 56%	3 or 17%	18 or 100%	

90	91

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Spotlight on
Seismic sensors to help in earthquake

You can go from solid rock to reclaimed land to old marshy areas and stream beds…

A strong earthquake near Levin on 25 May 2020 was a reminder that earthquakes do not respect
COVID-19. Council also learned that after the Kaikoura earthquake it sometimes took months to assess the impact of the shaking on the city’s buildings.
Therefore in 2019/20, Council reached an agreement with Canterbury Seismic Instruments (CSI) to install a close network of 100 sensors installed in our traffic light cabinets.
CSI is the developer of the network, called Sentinel, which is an earthquake response service that delivers real-time earthquake building status updates to cities and building owners, occupiers and property managers.
The partnership between the Council and CSI involves free exchange of information from the network for Council use, in return for access to the traffic light cabinets to enable the installation of the system.
The sensors mean the Council and subscribed business operators and building owners can rapidly assess the condition of buildings and infrastructure after a shake throughout the city.
This crucial ground-shaking data will help emergency managers make quick decisions about which Wellington City Council buildings are safe for occupancy or not.
The Sentinel app also lets people flag the locations of friends and family and be automatically informed of the shaking at these locations. This helps every person answer the most pressing questions in the aftermath of a quake: What should I do? What was the shaking like for my partner or parents? At my kids’ school? Where do I go first? The information is delivered to users
via text, email, website or via a smartphone app.
The intention is that the sensors in Wellington will be no more than 200 metres apart.

Dr Hamish Avery, the Chief Technology Officer and Government Relations Manager at CSI, said a dense grid was necessary to ensure accurate
measurement of the shaking at every point due to the big differences in ground and soil conditions and subsurface structures in central Wellington.
“Over several hundred metres you can go from solid rock to reclaimed land to old marshy areas and stream beds in parts of the central city. This means the shaking will vary greatly over small distances and helps to explain why some Wellington buildings were badly damaged in the 2016 Kaikoura quake, and had to be demolished, while others nearby were undamaged.”
Sentinel works by creating ground shaking ‘heat maps’ from the dense sensor data for each earthquake in several different formats, from shaking relative to the Building Code to how much the ground has moved relative to the to the Mercalli Intensity scale. The ‘heat maps’ also show probable damage to underground services such as power, water, and telecommunications.
At an individual building level, the shaking beneath a building is compared to its known strength and a damage estimate is made. The Council will use this information
to better respond to earthquakes for its own buildings.
The first sensors were installed in Christchurch in late 2018 and then Waimakariri District Council in early 2019. A network is also operating in Hutt
City. The Wellington Sentinel sensor installation is expected to be completed by September 2020.

Dr Hamish Avery, CSI

92	93

Veronica Bryne
Senior Contracts Engineer
We continued working to deliver for the community

Te Pūrongo ā-Tau Annual Report 2019—2020

7.
Waka

Our performance in detail

Transport

This chapter explains what we did and how we performed in our Waka – Transport portfolio of activities.

95

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

 	

Overview of the year

Our services in this section include everything from looking after traffic lights in the city, road markings, resurfacing the carriageway, earthquake strengthening tunnels, and walls above and below the road, road safety, and looking after the city’s footpaths and cycleways.
We also look after Council-owned parking in the city.

Impact of COVID-19
The following outlines the impact of COVID-19 on our work programme and provides a snapshot of the delays or additional work carried out in response to the lockdown.
While COVID-19 materially impacted the use and delivery the services and facilities in this area, not all were equally affected.

Physical works delivering cycleways projects went on hold during Level 4 of lockdown. Work resumed after lockdown, but the programme was delayed overall.
With more people cycling and walking in their neighbourhoods during lockdown, we
implemented a lower 30kmh speed limit along the South Coast and Miramar Peninsula roads.
We installed temporary P15 parks in the central city, to support retailers and click-and-collect initiatives, allowing customers places to park to collect their takeaway food and shopping orders.
Parking fees for metered and coupon spaces were made free of charge from 24 March until 11 May – during the Level 4 lockdown periods. Paid parking resumed 12 May, two weeks after the move back to Level 3.
We arranged the Courtenay Place weekend closure to traffic to support local bars and restaurants when we moved up the levels and were required to coordinate parking services, emergency services, and public transport, and to ensure pedestrians could keep as safe as possible.

During the year we completed the earthquake strengthening of the Seatoun Tunnel portals, continued to work on the Let’s Get Wellington Moving programme with our partner agencies, worked closely with GWRC on planning and implementing the last
of the major bus hubs, and maintained our extensive transport network, cycleways and footpaths.

We deployed a dozen Variable Messaging System (VMS) boards to assist with general messaging such as – “drivers, watch for pedestrians” to assist with COVID-19 testing facilities and to improve the safety of the network with more people walking and cycling in the city.

With more people cycling and walking during lockdown, we implemented a lower 30kmh speed limit along
the South Coast and Miramar Peninsula roads

Performance summary
This strategy area is responsible for delivering about six percent of Council’s performance measures. Out of the 30 KPIs reported, none were exceeded, 18 were within 10 percent of target and 12 were not met.
COVID-19 did not have a material impact on the performance indicators for the transport network as most are technical in nature, for example condition of roads, walls, bridges and tunnels.
There was direct impact on parking occupancy as travel restrictions forced people to work from home and reduced utilisation of the Cable Car.

12

18

Key performance indicator results

Not met Within 10% Exceeded

Financial summary
Operating expenditure for the Transport activity area was underspent by 9 percent and revenue was over budget by 42 percent due to additional NZTA subsidies, taking the net position to $9.6m underspent. The net position for parking was down 25 percent due to the waiving
of parking fees in response to COVID-19 restrictions. Overall, the operating budget was $5.8m underspent.
On Target

Underspend	Overspend

Most of the outcome indicators showed no discernible trend with four showing an improving trend and four showing a declining trend. Resident’s monitoring survey results make up six of the eight trending results, with modes of transport accounting for the other two.
For the full set of outcome and key performance indicators and variance explanations, see page 116.

4

4

Outcome indicator trends

4 down,
4 up,
14 no trend

Delays to road resurfacing works and to other work programmes, including the cessation of work during COVID-19 lockdown, resulted in 16 percent capital underspend, with $10.7m to be carried forward.
For more details on the Transport budget, please see page 100.

On Target

Underspend	Overspend

Variance: $5.8m or 12% under spent	Variance: $9.6m or 16% under spent

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

 	

Waka
Transport

Tūnga waka
Parking

What we do
In this area we manage, maintain and improve the city’s transport network so that people can access places easily and safely. We look after hundreds of kilometres of city accessways, footpaths, bike
paths and lanes, and roads, including bus lanes and stops, parking facilities, traffic signs and signals, street lighting and pedestrian crossings.
Some of the activities in this area are managed by Council-controlled organisation Wellington Cable Car Limited. This organisation is profiled on pg 108 in the Council-controlled organisations chapter, including details of its board and governance structure.
Key projects
Some of the highlights in our Transport activity this year include::
Let’s Get Wellington Moving (LGWM)
Detailed planning activities continued for Let’s Get Wellington Moving. This included development of options for: Mass Rapid Transit from the Railway Station to Airport; Strategic Highway Improvements including the Basin Reserve and an extra Mt Victoria Tunnel; and improvements for buses, cycling and walking into and across the central city including the Golden Mile and Thorndon Quay/Hutt Road. We also introduced safer speed limits of 30kmh on most central city streets in July and consulted on options for the Golden Mile.
Public Transport Infrastructure
We worked closely with GWRC on planning and implementing the last of the major bus hubs as part of the improvements to the transfer points necessary for the changes brought about by the network changes to bus routes in July 2018. These included new bus passenger interchange transfer locations at Karori Tunnel and in front of the new Johnsonville library on Moorefield Road, Johnsonville.

Strengthening and resilience work
During the year we completed the earthquake strengthening of the Seatoun Tunnel portals and retaining wall on the Strathmore side. We also completed strengthening Happy Valley Road Bridge, replaced Box Hill bridge pedestrian barriers, and started strengthening works on Grant Road and Frandi Street retaining walls.
Network improvements
We made several network improvements, including:

cycleways completed: 955m of a two-way bike path for public use from Oriental Bay to Little Karaka Bay; new walking and biking paths on Hutt Road; an uphill bike lane on Crawford Road; bike lanes on Rongotai Road; Wakely Road shared path upgraded, and a
two-way bike path on part of Evans Bay Parade;
made a variety of network improvements including widening Glanmire Road to improve visibility, and made safety improvements to Takarau Gorge Road;
resurfaced 377,000sqm of roadways and installed 6,150m of road markings;
launched a street light outage map for customers, repaired 220 damaged hand, guard and sight rails, and completed the renewal of five retaining walls and one seawall;
installed 513 LED lights and 105 new light poles;
cleaned 772 slips on our roads and footpaths; and
completed the Bus Priority Action Plan and trialled the use of e-scooters.

This year we cleaned 772 slips on our roads and footpaths

What we do
In this area we operate approximately 3,200 on-street parks across the central city, with approximately 890 further parks located in off-street locations. Most of the off-street parks are in the Clifton Parking area located off the Terrace which is managed by the Council on behalf of Waka Kotahi NZTA. In addition, the Council manages several resident and coupon parking zones across the city and enforces parking restrictions and parking-related bylaws in surrounding suburbs.
Key projects
Some of the activities we did in our Parking area this year include:
City parking
Council manages on-street parking through a mix of mechanisms, including clearways, time limits, meter charges, class restrictions (such as mobility, motorcycle, taxi and buses), coupon parking zones and residents parking zones. This year we:

issued 190,502 parking infringements.
issued 8,195 Resident, Coupon, Loading Zone and Guest permits.
processed more than 20,000 appeals from customers questioning the reason why they were issued an infringement.

New Parking Policy adopted
We adopted a new Parking Policy which will guide future decision-making on the management of all Council-controlled parking spaces across the city. The new policy puts in place a hierarchy to prioritise spaces for different types of parking in different parts of the city and how that space is used. The policy also provides a new approach to setting parking fees in response to supply and demand and developing are-based parking management plans.

Trialling the use of Cashless Meters
During the year the Council began a trial of cashless meters. Ten cashless meters are currently located at selected locations across the city and are located close to a cash accepting machine to ensure that
on-street parking customers have a choice to pay for their parking by cash, card or phone app. Given the impact of COVID-19 a decision has been made to extend the trial into the 2020/21 year. Once the trial is completed, we will analyse the results and decide
whether the use of cashless meters will be expanded.

A new Parking Policy was adopted this year

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Transport
finances

Transport
performance

How it was funded
Services in this activity area are funded through a mixture of general rates, fees and charges and grants and subsidies received from from Waka Kotahi NZTA for transport related activities.
Detailed information on funding is on page 325 to 326 of Section 4: Financial Statements.

What it cost (operating expenditure $000)

7.1 Transport	2017/18	2018/19	2019/20	2019/20	2019/20	
	Actual	Actual	Actual	Budget	Variance	
Expenditure	55,186	59,966	64,212	70,410	6,198	

(11,789)	(8,327)	3,462

Reduced expenditure due to the timing of LGWM projects and a delay in the Ngauranga to Petone cycleway. COVID-19 resulted in the cessation of all but safety related work through the lockdown period.
Revenue	(9,974)	(14,509)

52,423	62,083	9,660

Additional subsidy revenue from NZTA arising from capital project work undertaken in relation to LED streetlights, pedestrian network and road maintenance.
Net Expenditure	45,212	45,457

The following tables provide a summary of how well we performed against Council’s agreed measures: outcome indicator trends and key performance indicators results for the Transport activity area. Some of the KPIs and outcomes use information from the Council’s Residents’ Monitoring Survey (RMS), which is undertaken on an annual basis.
The survey has a margin of error of +/- four percent.
Outcome Indicators
We use outcome indicators to monitor our city over time, which provides information on trends that may influence our performance, including those outside our control. We do not set targets for Outcome indicators though we have a desired trend direction. Of the 37 outcome indicators we monitor, four were trending in the desired direction and four had adverse trends. For details see pages 129 to 130.

Total

Favorable variance due to higher NZTA subsidies for capital work and a reduction in Actual expenditure arising from the timing of costs incurred for LGWM and the Ngauranga to Petone cycleway.

7.2 Parking						
Expenditure	14,294	14,593	15,490	16,718	1,228	
Revenue	(26,992)	(29,036)	(27,221)	(32,307)	(5,087)	
Reduced parking income due to the waiving of parking fees over the lockdown period.

Net Expenditure	(12,698)	(14,443)	(11,731)	(15,589)	(3,858)	
Transport Total		
Expenditure	69,480	74,559	79,702	87,128	7,426	
Revenue	(36,966)	(43,545)	(39,010)	(40,634)	(1,624)	
Net Expenditure	32,514	31,014	40,692	46,494	5,802	

What it cost (capital expenditure $000)

7.1 Transport	2017/18
Actual 55,166	2018/19
Actual 53,492	2019/20
Budget 57,883	2019/20

Revision

535	2019/20
Actual 48,898	
Revised budget

58,417	
Variance to revised budget
9,519	
Carry forward

10,631	

7.2 Parking	299	821	224	80	192	304	112	71	
Transport Total	55,465	54,313	58,107	615	49,090	58,721	9,631	10,702	

Under budget due to delays on road surface renewal work and timing on other large projects eg Bus Priority Planning, Ngaio Gorge and Wadestown route resilience. The cessation of work other than safety related through lockdown has caused significant underspending.

Waka – Transport	4	14	4	22
Six out of the eight outcome trends evident, were sourced from the Resident’s Monitoring Survey. Desired trends were seen against discouraging use of cars and encouraging use of public transport and active modes, however safety concerns increased.

Key Performance Indicators
We use performance measures to track how well we are delivering services against targets as set out in the 10-year and Annual Plans. The detailed results of Key Performance Indicators are listed in Chapter 9 of this section, see pages 149 to 150. These pages include data for the last three years to show trends
and include variances explanations for relevant areas where targets have been exceeded or not met.

Total

25

Not met	Within 10%	Exceeded
Transport	7	18	0
Although some measures improved, KPIs were not met for: condition rating of wall structures, road resurfacing, cycling, traffic congestion, street lighting in suburbs and Cable Car passenger trips. This underperformance was not related directly to COVID-19.

5

Parking	5	0	0
None of the parking KPIs were met, with impacts of COVID-19 restrictions on occupancy rates. Residents perception of parking continues to be well below target.

7 Waka – Transport total	12 or 40%	18 or 60%	0 or 0%	30 or 100%	

100	101

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Our performance in detail

Spotlight on
Daily checks
help keep kororā safe

Mena is certified by the Department of Conservation to work as a conservation dog

Every morning before construction work begins for the new Cobham Drive cycleway, workers check for kororā (little blue penguins) which could have taken refuge overnight.
They check under and around vehicles, and in the areas where rock is going to be moved from and to – using a torch when necessary, and a special camera has been set up to help them see into the crevices between rocks.
Wellington City Council project manager and engineer Veronica Byrne said careful penguin management was a top priority for the transport project, which had almost finished transforming the previously eroding, and somewhat neglected, area into a much more appealing place for people to walk, run, bike, scoot and spend time.
The Cobham Drive improvements include replacing the existing shared path with a two-way bike path and separate footpath, enhancing the sculpture trail, improving two beaches, building a 430m-long rock revetment (bank) to help control erosion,
and planting thousands of native plants.
“Our contractors, Downer, take penguin health and safety seriously, and bought the camera to help ensure there are no surprises,” Veronica said.
“It helps that building engineered rock seawalls like the one going in between the roundabouts at Calabar and Troy streets is a very careful process. The right-sized rocks have to be slowly and skilfully lowered into position to avoid dropping and breaking them, which means our
operators are also able to keep an eye out for little blues.”
As part of the planning and consent process, a penguin management plan was developed with, and approved by, the Department of Conservation, and actions on site include daily penguin checks and reporting.

DOC senior ranger biodiversity Brent Tandy said the transport project had been a good example of how things should be done.
“In terms of attitude, it’s been really good right from the start,” he says. “All of the construction team has been engaged, involved and aware, which is critical for the right outcome.”
Penguins tend to avoid the construction zone, but if one is spotted, which has happened on a few occasions, work in the immediate vicinity temporarily stops, and the team seek advice from Brent on the best course of action.
The workers on site are very familiar with spots where penguins have nested and rested in the past,
following regular visits by New Zealand’s only penguin detection dog Mena and her handler Alistair Judkins.
Mena is certified by the Department of Conservation to work as a conservation dog as part of its Conservation Dogs Programme, and her visits have been timed to coincide with penguin nesting and moulting seasons.
Predator Free Wellington also checks and maintains predator traps in the area, and volunteers
from Places for Penguins will be placing and monitoring 20 permanent nesting boxes.

Mena, Conservation Dog

102	103

Ngā rōpū e here ana ki

Te Pūrongo ā-Tau Annual Report 2019—2020

Strategy area

8.
Council- Controlled

Our performance in detail

te Kaunihera

Organisations

Included in our strategic areas is our reporting on the organisations that undertake activities on behalf of the Council and are each governed by an independent board. Council-controlled organisations (CCOs) enable
the Council to use specialist expertise to manage Council assets or deliver Council services. There are seven
CCOs plus the Wellington Regional Stadium Trust:
Basin Reserve Trust manages and promotes the Basin Reserve for recreation, leisure, and games of domestic and international cricket.
Karori Sanctuary Trust trades as ZEALANDIA and manages ongoing conservation and restoration work at its sanctuary in Karori.
Wellington Cable Car Ltd maintains and operates Wellington’s iconic Cable Car.
Wellington Museums Trust trades as Experience Wellington and manages educational and cultural facilities and experiences.

Wellington Regional Economic Development Agency Ltd (WREDA) trades as WellingtonNZ and is the city and region’s economic development organisation.
Wellington Regional Stadium Trust owns, operates and maintains the Sky Stadium as a high-quality multi-purpose sporting and events venue. Sections 5 and 6, Schedules 8 and 9 and Part 5 of the
Local Government Act 2002 do not apply to the Wellington Regional Stadium Trust. The Trust is not a Council-controlled organisation, however its relationship with Council is conducted in a similar manner so it is reported here in a similar fashion.
Wellington Water manages all three water services for Hutt, Porirua, Upper Hutt and Wellington city councils, and South Wairarapa District councils.
Wellington Zoo Trust manages the zoo, provides experiences and education and supports conservation initiatives.

Kororā (little blue penguins)

Further reading: For details on the performance of each entity, please refer to their respective Annual Reports.

105

Basin Reserve Trust

Karori Sanctuary Trust

The Basin Reserve with new Museum Stand

The Basin Reserve Trust is responsible for the operation and management of Wellington’s Basin Reserve.
The day to day operational activities are carried out by Cricket Wellington under a management agreement with the Trust. The Trust is comprised of four members, two elected by Wellington
City Council including the chairperson and two members elected by Cricket Wellington.
The Basin Reserve is the home of Cricket Wellington and the home ground for the Wellington Blaze (women) and Wellington Firebirds (men) cricket teams.
The Basin Reserve is also a busy route for commuters on cycles, riding scooters and walking to and from the city year round.
The Basin Reserve is the home of the New Zealand Cricket Museum.
The board of trustees is: Alan Isaac (Chair and Council appointee), Councillor Sean Rush (Council appointee), Mike Horsley (Cricket Wellington appointee), and John Greenwood (Cricket Wellington appointee).
For full details on the Trust’s performance please refer to its Annual Report and the Council KPIs in Chapter 9 of this section.

The Karori Sanctuary Trust is a not- for-profit community-led organisation and trades as ZEALANDIA.
It's the world’s first fully-fenced urban ecosanctuary, with a 500-year vision to restore Wellington’s forest and freshwater ecosystems as close as possible to their pre-human state. The 225-hectare, renowned and popular conservation project has reintroduced more than 20 species of native wildlife back into the area, and as a result of ‘spill-over’ beyond the fence, has significantly changed the birdlife of Wellington.

Hihi by Janice McKenna

The organisation also has a significant engagement, education and empowerment programme. ZEALANDIA is the city’s largest provider of environmental education outside the classroom, and supports academic research across diverse disciplines. It also has several projects outside the sanctuary. For example, Sanctuary to Sea Kia mouriora te Kaiwharawhara, which coordinates efforts to restore the mauri (lifeforce) of the

Kaiwharawhara Stream. ZEALANDIA aims to connect the 130,000+ visitors it receives each year with insights into conservation and what it means for people.
The governance structure for the Trust has a governing board of trustees and a separate board for the guardians of the sanctuary. The trustees are appointed by Wellington City Council with guidance from the Guardians of the Sanctuary.
The board of trustees is: Phillip Meyer (Chair), Professor David Bibby, Jo Breese, Dr Libby Harrison, Pete Monk, and Russell Spratt. The Chief Executive is Paul Atkins.
The Guardians provide a long-term strategic perspective on the sanctuary’s evolution and have an active interest in the long-term future of the Trust. The Guardians are: Roy Sharp (Chair), Julia Bracegirdle, Latu Clark, Mayor Andy Foster, Jim Lynch QSM, Ellen Carylon, and Dr Nicola Nelson.
For more details on the Trust’s performance please refer to its Annual Report and the Council KPIs in Chapter 9 of this section.

Wellington
Cable Car Limited

Wellington Museums Trust

The Cable Car

Space Place

The Cable Car runs between Lambton Quay and Kelburn, a hill suburb overlooking
the city and harbour.
Wellington Cable Car Ltd owns and operates the city’s iconic funicular railway. The first journey was taken on 22 February 1902.
The Cable Car is one of Wellington’s most well visited attractions and records more than 1 million passenger journeys a year comprised of commuters, students and residents as well as the many visitors to Wellington.

Views from the Kelburn precinct are some of the most photographed in Wellington. The precinct contains the Cable Car Museum and is a gateway to Space Place, the Botanic Garden, the Kelburn village and the free shuttle service to ZEALANDIA.
Wellington Cable Car Ltd is wholly owned by the Council and directors appointed to the board are Council officers. The Chief Executive is Cesar Piotto, who joined the Cable Car on 4 May 2020.
The board of directors is Andy Matthews (Chair), Danny McComb and David Perks.
For full details on the company’s performance please refer to its Annual Report and the Council KPIs in Chapter 9 of this section.

The Wellington Museums Trust, which trades as Experience Wellington, operates six institutions on behalf of the Council.
These are Capital E, Space Place at Carter Observatory, City Gallery Wellington, Nairn Street Cottage, the Cable Car Museum, and Wellington Museum. In addition to operating these diverse activities the Trust manages the Plimmer’s Ark display in Old Bank Arcade, the recovered Plimmer’s Ark timbers in storage and Wellington city’s heritage collections, and provides support to the New Zealand Cricket Museum.

In managing these institutions and artefacts, the Trust’s main activities include:
delivering a diverse programme of events and exhibitions.
working with national and international artists.
conserving and caring for the objects of its collections.
delivering education experiences for children and young people.
The board of trustees is: Jackie Lloyd (Chair), Rachel Farrant, Peter Jackson, Jane Wrightson, Peter Johnson, and Councillor Diane Calvert.
The Chief Executive is Sarah Rusholme.
For full details on the Trust’s performance please refer to its Annual Report and the Council KPIs in Chapter 9 of this section.

Wellington Regional Economic
Development Agency Ltd

Wellington Regional Stadium Trust

Mr Go's Fish Bao

The Wellington Regional Economic Development Agency Ltd (trading as WellingtonNZ) supports economic performance across the region.
They aim to enhance prosperity, vibrancy and liveability for the people who live and work in Wellington.
WellingtonNZ markets Wellington as a destination for visitors, migrants and investors; it helps businesses grow and innovate; it advocates for Wellington’s economy, attracts and promotes major events, and runs our civic venues.
The WellingtonNZ teams work across regional development, destination and attraction; events and experience; and marketing and communications.

Its programmes, projects and initiatives are designed to act as catalysts, helping Wellington to unlock more of its economic potential.
WellingtonNZ’s purpose is to make the Wellington region “Wildly Famous as the best place in New Zealand to live, work, study, visit and play”. Its main activities include:
marketing Wellington as a destination for visitors, businesses, students and investors
helping businesses grow and innovate, and advocating for Wellington’s economy
start-up incubation, acceleration and innovation services via CreativeHQ
tourism development and destination management
attracting and promoting major events, conferences and performances to Wellington
film attraction, permitting and facilitation
managing civic venues in Wellington
The board of directors is: Tracey Bridges (Chair), Matt Clarke, Thomas Pippos, Wayne Mulligan, Jo Healey, Kylie Archer, and Steve Maharey.
The Chief Executive is John Allen.
Underpinning WellingtonNZ is the Wellington Regional Strategy (WRS) and the Wellington Regional Strategy Committee which comprises of 10 members appointed by the Greater Wellington Regional Council.
These members are: one regional councillor, four members nominated by Wellington City Council, one member nominated by each of Kāpiti Coast District Council, Hutt City Council, Porirua City Council
and Upper Hutt City Council, and one member nominated by the three Wairarapa district councils.
The WRS Committee implements and develops the Wellington Regional Strategy, including overseeing WellingtonNZ.
For full details on the company’s performance please refer to its Annual Report and the Council KPIs in Chapter 9 of this section.

The Trust owns, operates and maintains the stadium as a high-quality multi- purpose sporting venue.

Phoenix fan at the stadium

The stadium also hosts a range of musical and cultural sponsored events, and a variety of trade shows plus community events. Highlights of some of the sporting and other events that were held at the Stadium during the year are listed in the front section of this report and in the Economic Development section.
The Stadium was opened in 2000 and has hosted more than 50 event days each year plus community events. The Stadium is home to the Hurricanes
and the Wellington Lions rugby teams, the Wellington Phoenix football team, and regularly hosts the New Zealand national men’s and women’s teams in rugby, football and cricket.
The Trust is part way through a programme of upgrades to ensure the venue is able to meet the needs of its diverse programme of events and the growing expectations of sports fans.
The board of trustees are jointly appointed by the Council and Greater Wellington Regional Council.
The board of trustees is: John Shewan (Chair), Tracey Bridges, Steven Fyfe, Rachel Taulelei, Nicola Crauford, Councillor Sean Rush from
Wellington City Council and Councillor Glenda Hughes from Greater Wellington Regional Council.
The Chief Executive is Shane Harmon.
The Trust is not a Council-Controlled Organisation, however its relationship with Council is
conducted in a similar manner so it is reported here in a similar fashion for this reason.
For more details on the company’s performance please refer to its Annual Report.

Wellington Water

Wellington Water Limited is a council-controlled organisation owned by the Hutt, Porirua, Upper Hutt and Wellington city councils, South Wairarapa District Council and Greater Wellington Regional Council.
The councils are all equal shareholders.

The role of Wellington Water is to manage the drinking water, wastewater and stormwater services of its shareholder council owners.
Wellington Water’s main activities include:
managing water treatment and supply
managing stormwater and wastewater service delivery in the Wellington region
promoting water conservation and sustainability.

Wellington Water does not own any drinking water, stormwater, wastewater or bulk water assets. Nor does it set policies or control rates or user charges. These functions remain with the local councils and Greater Wellington Regional Council.
The board of directors is: Geoff Dangerfield (Chair), Cynthia Brophy, Kim Skelton, Mike Underhill and Philip Barry.
A representative from each territorial authority sits on the Wellington Water Committee that provides overall leadership and direction for the company.
The Wellington Water Committee is:
David Bassett (Chair) – for Hutt City Council
Wayne Guppy (Deputy Chair) – for Upper Hutt City Council
Alex Beijen – for the South Wairarapa District Council
Sean Rush – for Wellington City Council
Anita Baker – for Porirua City Council
Jenny Brash – for Greater Wellington Regional Council
Taku Parai is a representative of Te Rūnanga O Toa Rangatira
Kim Skelton is a representative of Taranaki Whānui ki te Upoko o te Ika.
The Chief Executive is Colin Crampton.
For more details on the company’s performance please refer to its Annual Report and the Council KPIs in Chapter 9 of this section.

Wellington Zoo Trust

Wellington Zoo was New Zealand’s first zoo, opening in 1906. The Wellington Zoo Trust manages
the popular and award-winning 13-hectare zoo, home to native and exotic animals, and is recognised for expertise in animal welfare, conservation, visitor experience and sustainability.
The Zoo delivers learning sessions to thousands of children a year to grow their understanding of
animals and the natural world. It also partners with conservation organisations for at-risk species from New Zealand and around the world to advocate

Phoenix fan at the stadium

for animals and save wildlife and wild places. Wellington Zoo treats hundreds of native animals a year at The Nest Te Kōhanga, the Zoo’s animal hospital and centre for wildlife health services, and is the world’s first carboNZero certified Zoo.
The board of trustees is: Craig Ellison (Chair), Raewyn Bleakley, Michael Potts, Benjamin Bateman, Nina Welanyk Brown, and Councillor Fleur Fitzsimons
The Chief Executive is Karen Fifield MNZM.
For more details on the Trust’s performance please refer to its Annual Report and the Council KPIs in Chapter 9 of this section.

Te Pūrongo ā-Tau Annual Report 2019—2020	Our performance in detail

Chapter 9

9.
Detailed
performance information

Awhiorangi – a student at Te Kura Kaupapa Māori o Ngā Mokopuna, Te Rā o Waitangi 2021

This chapter explains how we measure our non- financial performance for our portfolio of activities. It provides the detailed results and variance explanations for our Key Performance Indicators, principles used to assess Outcome trends and supplementary tables for further information.

115

Te Pūrongo ā-Tau Annual Report 2019—2020

How to read our

Our performance in detail

Te Pūrongo ā-Tau Annual Report 2019—2020

Performance details

Our performance in detail

performance information

Detailed outcome indicators
Pārongo ā-tāone – Governance

Outcome Indicators
Outcome Indicators are shown as trends over time (3–5 years) with an icon that provides an indication of the trend direction.

Where outcomes display a positive trend, these will be shown with an up arrow, a negative trend with a downward arrow and no trend either blank or a dash.
“No trend” is used where there are not enough data points for a trend to be derived, or where data points are
non-comparable (eg where there has been a change in methodology, low sample size, data integrity limitations or the impact of an extraordinary event like doing a survey during COVID-19).
Outcome indicators are not specified in our Annual Plan (they appear in Our 10-year Plan), and as such commentary and trend analysis is not required for the
Annual Council performance story. However, we include notes against trends where it is seen to add value.
Key Performance Indicator
KPI reported result icon. The icons provide a visual indication of the performance measure and outcome indicator results. For Key Performance Measures they show whether the reported result is in one of four categories:
•   Not met: greater than 10 percent below target; or
•   Within 10 percent: between zero percent and 10 percent above or below target; or
•   Exceeded: greater than 10 percent above target; or
•   NA: used where a baseline target is being established or no result was available.
We use a range of +/- 10 percent from target as it allows for fluctuations in performance across the year
(eg seasonal changes). This is consistent with the reporting of other performance information during the year eg in Quarterly Reports.
Variance commentaries are only included for exception results: Not Met and Exceeded.

Some results are reported in this chapter with no comparison to target with performance icon	NA – this is used where a no target has been set, data is not available or where a baseline target is being established. These results have not been included in the performance summaries for each activity area.

Residents Monitoring Survey (RMS)
This survey is undertaken annually by Council. The survey is conducted in two parts. This year, the survey was sent out during the COVID-19 restriction to just over 3,000 residents and remained open until minimum quotas for age, gender and ward were met. The final sample size
for 2020 was 696 for Part 1 and 627 for Part 2, post- weighting. The standard margin of error at 95 percent confidence level was 4 percent.
Principles for reporting results
The following principles should be noted when considering published results:
1/ Previous years’ published results are updated with latest information available. This means as data is updated by Statistics New Zealand, or other external data sources, the Annual Report will overtype the previous years’ published results with the most accurate results available at the time of publication.
2/ As per above any “per capita” results will be updated to reflect revised population estimates.
3/ If there has been a change to the methodology of the measure, previously reported results will be updated to reflect that new methodology, where possible.
4/ Baselines are established when we are confident that the reported data is stable enough to set a target (ie not influenced by extraordinary events)
5/ Trends are only evident over multiple years (up/ down/ up is reported as “no trend” – this is shown as an “-“ icon).
6/ If data is not available at the time the report is prepared, as at data may be included, or result shown as “NA”. Missing data is revisited in the next year’s Annual Report.
7/ Measures and targets for Council Controlled organisations are set in their annual Statement of Intent. Results published are subject to final audit and may change. Previous years’ results will be updated in the following year Annual Report.

Outcome & heading	Desired trend	2015/16	2016/17	2017/18	2018/19	2019/20 Trend
result	Comments	
Residents’ confidence and engagement

Voter turnout in local elections, referendums and polls

2013:
41.1%

2016:
45.6%

–

Elections are held every three years. These results are a reflection of challenges to engage with and lift voting rates amongst eligible voters in central and local body elections.

Residents (%) who believe

46%

43%

46%	46.8%

participate in city decision-making	

they have the opportunity to

47.4%

2019:
40.1%

Māori and mana whenua engagement and confidence

Mana whenua partners agree that the use and protection of the city’s resources for the future is appropriate (our kaitiaki role)

1 agreed    Both part-    Both part-				Both 1 partner    ners were    ners were			partners was not	not sure	not sure		partially sure			agree

As per previous years we conducted an annual interview with mana whenua partners; this approach needs improvement to provide meaningful insights on the
desired outcome as agreement was not clear.

Māori residents (%) who feel
that Māori culture is appropriately visible in the city
Māori residents (%) who feel that te reo Māori is appropriately visible in the city

new

56%

new

43%

We reviewed methodology and concluded that language is a di- mension of culture, so measure has been removed.

Māori residents (%) who feel
that Māori culture is appropriately recognised in the city
Māori residents (%) who feel that te reo Māori is appropriately recognised in the city

new

40%

new

54%

We reviewed methodology and concluded that language is a di- mension of culture, so measure has been removed.

Māori residents (%) who believe

they have the opportunity to

new

50%

participate in city decision-making	

33%

41%

NA

45%

NA

Result not clear

Diversity

Diversity of population

Census data 2006: Wellington
City: European (67.6%);
New Zealander (10.2%),
Maori (7.4%);
Pacific peoples (5%); Asian
(12.7%);
Middle Eastern/
Latin American/ African (2%);
Other (0.0%).

Diversity – residents valuing diversity

78%

Census data 2013: Wellington
City: European (72.8%);
Maori (7.6%);
Pacific peoples (4.7%);
Asian (14.9%);
Middle Eastern/
Latin American/ African (2.4%);
New Zealander (1.7%);
Other (0.1%).
80%	81%	82.6%

Residents who believe that Wellington becoming home for an increasing number of people
with different lifestyles and cultures, and from different countries, make
it a better place to live.

Census data 2018: Wellington
City: European (74.1%);
Maori (8.6%);
Pacific peoples (5.1%);
Asian (18.3%);
Middle Eastern/
Latin American/ African (3%);
New Zealander (1.2%);
Other (0.3%).
83.8%

116

Te Taiao mete Hanganga – Environment & infrastructure

Outcome & heading	Desired trend	2015/16	2016/17	2017/18	2018/19	2019/20 Trend
result	Comments	

Access to green open spaces

Residents’ self-reported use of the city’s open spaces –
local parks and reserves, botanic gardens, beaches and coastal areas, waterfront and walkways – at least once a month.	Parks 56%	Parks 55%	Parks 58%	Parks 63%	Parks 75%	See supplementary table on page 151-152.
On average, over 90% of residents state they have used Wellington’s open spaces in the last year. The most popular of these is our parks, that 75% of residents used at least once a month.	
Open space land owned or maintained by the Council – total hectares	3,833	4,040	4,073	4,221	4,251			
Open space land owned or maintained by the Council – square metres per capita	188.1	194.3	191.5	201.96	202.04			

Environmental health

City Biodiversity Index indicators

WCC has committed to monitor its birds and freshwater fish as part of this framework. We are making progress in developing our city Biodiversity Index and will establish baseline as part of Long Term Plan process.

Native bird counts	13 species		14 bird		13 bird	14 bird species	species	species

Freshwater biological health (macro invertebrates) – Maka- ra, Karori, Kaiwharawhara, and Porirua streams, ideal >100
Freshwater quality – Makara, Karori, Kaiwharawhara, Owhiro and Porirua streams

2 out of 5 streams sampled
Fair

NA - only Average of Average of Average of

4 streams 5 streams 5 streams 97.5MCI	95.6MCI	- 93 MCI

Fair	Fair		Data no longer available

Waterway health – proportion of waterway monitoring reporting “good” or better (sampled in summer)

All four	All three
steams		steams monitored monitored recorded	recorded rating	rating
of fair	of fair

All four steams monitored recorded rating
of fair
new

Data no longer available

% of city declared predator/ pest-free (low density),
by species

Estab- lishing baseline

Renewable energy generation in the city

new

Fuel Capacity (MW)
Wind 60.928
Hydro 0.48
Solar 4.814

Only two of the five streams monitored in the Wellington area were rated at 100 or greater for ideal macro-invertebrate levels.
The water quality index is no longer reported by GWRC. They report on in- dividual variable results against their plan objectives, Australian NZ water quality guidelines and the NPS-FM.
The water quality index is no longer reported by GWRC. They report on in- dividual variable results against their plan objectives, Australian NZ water quality guidelines and the NPS-FM.

The Miramar Predator Free operation is about 1000 ha of the 29000-ha city area: 3.5%. We do not currently determine breakdown by species.
Figures show an encouraging increase in solar energy capacity with 1,392 connections (ICPs) in the residential
market segment, up from 1,216 last year.

Fuel Capacity (MW)
Wind 60.93
Hydro 0.48
Tidal 0.002
Solar 5.518
Bio-mass 5

3.5%

14 bird species
Average of 5 streams 93.9MCI

Data no longer available

Data no longer available

Establishing
baseline

Te Taiao mete Hanganga – Environment & infrastructure continued

Outcome & heading	Desired trend	2015/16	2016/17	2017/18	2018/19	2019/20 Trend
result	Comments	

Resident engagement in environmental protection and restoration

Hours worked by recognised environmental volunteer groups and Botanic Gardens volunteers	45,009	53,839	59,531	70,230	57,581		
Residents engaged in trapping or other predator control		new	19%
from PFS	23%
from PFS	27%
from RMS
survey	In 2020 the source changed from previous year. It was Predatory Free survey (PFS).	
Water consumption (commercial and residential combined) billion litres*	24.5b	25.1b	23.1b	Est 20.7b–24.7b	29.5b
litres	The result is based on the calculation 29,484,944m3 of water (1000 litres) used by 226,200 people. Wellington Water Ltd completed a study as part of their sustainable water supply work looking at options to improve the assessment of domestic consump- tion, and therefore improve the quantification and management
of leakage.	
Energy use per capita MWh per annum	6.8	6.7	6.47	6.31	5.70 MWh		Total energy consumption dropped 5% across the city with 63,661 less MWh used.	
Total city greenhouse		5.7 tonnes			5.045	According the WCC source,	
emissions per capita (tonnes)		Source: Christchurch			tonnes Source:	Wellington City’s emissions fell by 7%, between 2001 and 2019.	
		Community			WCC green-	For further information refer to	
		Carbon			house gas	https://www.zerocarboncapital.nz/	
		Footprint			inventory	assets/Uploads/	
		2016/2017			summary report	Wellington-City-Green-
house-Gas-Inventory-Summary-Re- port-Wellington2019-WCC-Final.pdf	
Residents who state they have taken action (on an ongoing basis) in the last year to reduce their greenhouse gas emissions			new	95%	92%	We ask residents what steps
(if any) they have undertaken to reduce emissions on an ongoing basis to reduce emissions in the last 12 months. Respondents can select multiple actions, so we report the result as those that have done “something” by counting those that did not say “nothing”. See
supplementary table for breakdown of types of actions taken on page 152.	
Total kerbside recycling collected per (kilograms per person)	54.4kg Total 11,094	53.8kg Total 11,183	51.6kg Total 10,985	55.4kg Total 11,571	49.99kg
Total 10,519		
Kilograms of general waste to landfill per person	424	466	500	452	461 kg per person		

*mandatory measure

Whanaketanga ōhanga – Economic development

Outcome & heading	Desired trend	2015/16	2016/17	2017/18	2018/19	2019/20 Trend
result	Comments	
Visitor and talent attraction

Whanaketanga ōhanga – Economic development continued

Outcome & heading	Desired trend	2015/16	2016/17	2017/18	2018/19	2019/20 Trend
result	Comments	
Economic performance

Number of domestic visitors (guest nights)
Number of international visitors (guest nights)
Average length of stay – international and domestic guest nights
Domestic airline passengers entering Wellington International Airport
International airline passengers entering Wellington International Airport
Secondary (international) students enrolled
Tertiary students enrolled total
Tertiary (international) students enrolled
Tertiary (domestic) students enrolled
International air destinations

1,542,892	1,465,917 1,508,912 1,624,042

743,203

2.1

810,846

2.13

809,530

2.12

751,750

2.09

4,957,898

5,121,757

5,310,967 5,506,409

890,897

901,373

902,622

935,526

Trend was increasing until COVID-19 travel restrictions impacted results for 2019/20.
Trend was increasing until COVID-19 travel restrictions impacted results for 2019/20.

1,157

1,287

1,314

1,385

47,660

44,785

43,945

5,035

5,235

5,170

42,630

39,545

38,775

new

6

NA NA NA
4,064,061

695,381
NA NA NA NA 6

Labour force participation – this indicator measures the number of the working-age population that is in the labour force. The labour force includes all people who are either employed, or unemployed and looking for work.

2006:
total la- bour force 147,696
of which 102,633
employed, 5,214 un-
employed.

2013: total
labour force 157,992
of which 105,243
employed, 7,368 un-
employed
73.02%

121,191 people living in Wellington City in 2018 were employed, of which 79.6% worked full-time and 20.4% part-time.

Labour force participation
proportion
Labour force participation
% employed
Labour force participation – change of those in employment
Labour force participation –
% change employed (fulltime or part time)
Economic diversity

71.28%

69.5%

66.6%

2,610

-2.9%

Wgtn 63.6;
NZ 52.2

Wgtn 64;
NZ 50.6

Wgtn 65.2;
NZ 48.9

Wgtn 66.3;
NZ 46.9

Wgtn 66.9;
NZ 47.2

The more concentrated a region or district’s economic activity is within a few industries, the more vulnerable it is to adverse effects, such as those arising from climatic conditions or commodity price fluctuations.
The Herfindahl–Hirschman Index (HHI) measures the level of diversification of the Wellington City economy. An index of 0 represents a diversified economy with economic activity evenly spread across all industries. The higher the index, the more concentrated eco- nomic activity is on a few industries.

Proportion of jobs in smart, knowledge-intensive industries – WC
Number of jobs in smart, knowledge-intensive industries – WC
Number of jobs in smart, knowledge-intensive industries – NZ
Proportion of jobs in
smart, knowledge-intensive industries – NZ
Unemployment rate – Wellington

55.8%

55.7%

55.7%	55.5%

NA

89,225

91,241

92,795

94,021

NA

747,419

767,095

787,783

806,311

NA

31.7%

31.6%

31.6%

31.7%

NA

4.90%

Wellington Wellington Wellington Wellington

2016 –	2017 –	2018 –	2019 –

Unemployment rate – New Zealand
Access to fibre broadband

5.40%

City 5.3%
2016 NZ
5.3%
As at June
2017,
119,464
users can connect

As at June
2017,
there was 28% uptake

City 4.9%
2017 NZ
5.0%
As at June
2018,
147,144
users can connect

City 4.3%
2018 NZ
4.5%
As at March 2019,
158,636
users can connect
As at March 2019,
there was 40.7%
uptake
2019 –
$122,240
per capita

City 4.2%
2019 NZ
4.6%
NA

Broadband deployment numbers for Wellington City no longer published by MBIE.

Uptake of fibre broadband

As at June
2018,
there was 34.4%
uptake

As at June
2020,
there was 52% uptake

Wellington City is ranked third in the region with Masterton at 58% uptake and Porirua city at 53%.

GDP per capita Wellington City

2016 –
$116,708
per capita

2017 –
$118,240
per capita

2018 –
$119,938
per capita

NA

Wellington City GDP per capita grew 1.9% in 2019 ahead of NZ per capita growth at 1.4%.

2018:
total la- bour force 169,875,
of which 121,191
employed, 7,719 un-
employed
75.9%

71.3%

15,948

4.7%

Business support, attraction and retention
Number of companies that are in New Zealand’s top 200
companies based in Wellington. Source: Deloitte Top 200		21	22	22	19		19 offices based in Wellington city Lost: Rangatira and Healthcare NZ (not in top 200), Pacific Aluminum (moved to Invercargill) No gains that are visible.	
Business enterprises – (net growth in business)	1.2%	2.6%	1.4%	1.8%	NA		

City vibrancy and economic performance
Pedestrian counts – average	2,153	2,039	2,201	Inbound		
of various Golden Mile sites.				average		
Previously reported as the				4,170,		
average per hour across both				Outbound		
inbound and outbound pedestrian				average		
counts across various sites on Wellington's 'Golden mile'. Survey				1,606		
was conducted in early March,						
however result may still be						
impacted by COVID-19 concerns						
Commercial building vacancy		new	Overall	Overall		
rates (80% code +).			vacancy	vacancy		
Source: Colliers International			rates	rates		
			6.2%,	6.5%,		
			total	total		
			supply is	supply is		
			at 1.39	at 1.385		
			million	million		
			sqm	sqm		

Whanaketanga ōhanga – Economic development continued	Oranga ahurea – Cultural wellbeing

Outcome & heading	Desired trend	2015/16	2016/17	2017/18	2018/19	2019/20 Trend
result	Comments	

Outcome & heading

Desired trend

2015/16

2016/17	2017/18	2018/19	2019/20

Trend result

Comments

GDP – overall Wellington City

2016	2017	2018	2019	2020
Overall	Overall	Overall	Overall	Overall GDP		GDP		GDP		GDP		GDP
$20,080m     $20,758m	$21,391m  $25,719m  $25,325m

Trend was increasing until impacted by COVID-19 restrictions. GDP (provisional) in Wellington City
was down 1.9% for the year to June 2020 compared to a year earlier. Growth was higher than in New Zealand (-2.1%).

Deprivation index – city	2013:	2018:
residents and New Zealand	Wellington	Wellington
average (most deprived deciles)	City Index	City Index
= 4.09 vs	= 4.03 vs
NZ = 5.43	NZ = 5.60
Wellington	Wellington
City Score	City Score =
= 953 vs	954 vs NZ
NZ = 995	= 1,003

Income (average annual earnings) – income ($) per annum

Wellington Wellington Wellington Wellington

2016 –	2017 –	2018 –	2019 –	NA

City	City	City	City
$72,530	$73,530	$75,706	$78,716

Income (average annual earnings)
– percentage growth

2016 –	2017 –	2018 –	2019 –
Wellington Wellington Wellington Wellington

NA

Income (average annual earnings)
– percentage growth NZ

Youth NEET (not in education, employment or training) –
as a proportion of 15–24 year-olds – WC
Youth NEET (not in education, employment or training) –

City 3.5% change
2016 NZ
Growth 3.1%
7.9%

City 1.4%	City 3.1% change		change
2017 NZ	2018 NZ
Growth	Growth
1.7%	3.7%
9.2%	7.3%

City 3.9% change
2019 NZ
Growth 3.8%
6.9%

Wellington growth just ahead of rest of NZ.

NA

NA

The result for 2019 does show the start of a positive trend however 2020 data is required to support this assessment.

11.4%

11.5%

12.1%

11.7%

12.1%

as a proportion of 15–24
year-olds – NZ	

42%

48.6%

87.9%

84%

85.4%

Cultural reputation, participation and vibrancy
Residents’ frequency of engagement in cultural and arts activities
New Zealanders’ perceptions that “Wellington has a culturally rich and diverse arts scene”

Residents’ perceptions that “Wellington has a culturally rich and diverse arts scene”

New Zealanders’ perceptions that “Wellington is the events capital of New Zealand”

88%	90%	86%

81%	79%	79%	80%

92%	90%	93%	90%

36%	34%	39%	38%

Results are within margin of error for residents’ monitoring survey.

The National Reputation Survey was held for two weeks in June 2020 during the pandemic. New Zealand was under COVID-19 National Alert Level One at this time. Given the effects of COVID-19 on domestic tourism, perceptions and experiences of Wellington are likely to have been impacted. However, result is a solid increase on previous years and almost as high at perception from Wellingtonians.
The National Reputation Survey was in field for two weeks in June 2020 during the worldwide coronavirus pandemic (COVID-19). New Zealand was under COVID-19 National Alert Level One at this time. Given the effects of COVID-19 on domestic tourism, perceptions and experiences of Wellington are likely to have
been impacted. Particular due to cancellation of events like World of Wearable Arts which only happens every two years. Result is now only just ahead of perception of all NZ which increased 5% points.
The National Reputation Survey was in field for two weeks in June 2020 during the worldwide coronavirus pandemic (COVID-19). New Zealand was under COVID-19 National Alert Level One at this time. Given the effects of COVID-19 on domestic

Residents’ perceptions that “Wellington is the events capital of New Zealand”

Trendresultsinconclusiveduetoimpactof COVID-19 restrictions.

52%	47%	42%	31%

tourism, perceptions and experiences of Wellington are likely to have been impacted. However, result is a solid 10% points increase on previous years and remains well ahead of perception from Wellingtonians (which suffered a big dip in 18/19).
Trend results are inconclusive as what appears to be a lift in 2020 could be a stabilisation of decline.

Te Papa visitors – total visitors

1,784,939  1,578,292  1,514,896 1,548,646

Te Papa visitors – overseas visitors

708,371	718,081	758,695	732,738

Te Papa visitors – New Zealand visitors from outside the region
Customer (%) satisfaction with the New Zealand Festival (2020) and economic return

Total visits to museums and galleries (including Carter Observatory)
Community access to venues subsidy: Total numbers of performers at supported events
Community access to venues subsidy: Total numbers of attendees at supported events

581,986	483,995	420,195	429,697

Trend results inconclusive due to impact of COVID-19 restrictions.
Trend results inconclusive due to impact of COVID-19 restrictions.
Trend results inconclusive due to impact of COVID-19 restrictions.

91% No festival

88% No festival
held this
year

688,169

780,414

725,214

770,320

Trend results inconclusive due to impact of COVID-19 restrictions.

19,149

5,084

13,551

Trend results inconclusive due to impact of COVID-19 restrictions.

144,053

89,118

153,543

Trend results inconclusive due to impact of COVID-19 restrictions.

1,108,283

524,274

278,414

No data to report on 2020 Festival
535,421

12,971

117,287

Cultural attraction and event investment success
Access to and participation in recreation and leisure

Kaupapa Pāpori me ngā Mahi a Rēhia – Social and recreation

Outcome & heading	Desired trend	2015/16	2016/17	2017/18	2018/19	2019/20 Trend
result	Comments	
% of residents who use		Pools	Pools	Pools	Pools		
Council pools, recreation centres,		35%	44%	(42%);	(42%);		
libraries or other leisure facilities				Rec centres	Rec centres		
				(39%);	(36%);		
				Libraries	Libraries		
				(73%);	(73%);		
				community	community		
				centre	centre		
				(25%) and	(24%) and		
				Community	Community		
				hall (21%)	hall (19%)		
Residents’ perceptions that Wellington offers a wide range	82%	85%	79%	81%	76%		Previous years increases have not been maintained however the survey was	
of recreation activities						conducted during COVID-19 restrictions and this could account for an increase	
						in responses that are now neutral.	
Residents’ frequency of physical activity	            74%	73%	74%	70%*	77%		*This question not asked in 2019 however result published is % of those that said they had participated	
						in organised or informal recreation	
						and sport in the last 12 months. In	
						other years the result is those who	
						state they were active for 2.5 hours	
						per week or more.	
Residents’ perceptions that there are barriers to	
	new	84%	81%	84%	For a breakdown of all types of barriers see supplementary table	
participating in organisation led recreation activities.						on page 153.	
Residents’ perceptions that there are barriers to		new	81%	75%	77%		
participating in participant							
led recreation activities.							
Residents’ health and wellbeing outcomes

Kaupapa Pāpori me ngā Mahi a Rēhia – Social and recreation continued

Outcome & heading	Desired trend	2015/16	2016/17	2017/18	2018/19	2019/20 Trend
result	Comments	
Residents’ perceptions – city	63%	59%	new	61% say	59% say poorly lit or dark public areas a concern

81%

76%

43%

38%

13%	See supplementary table on page 153.	
and community safety issues		category	poorly lit		The next largest concerns at 42%	
of most concern		added	or dark		were ‘threatening people’ and	
		and had	public		‘begging’, the latter improving by	
		greatest	areas a		13% on last year. The concern that	
		response	concern		grew the most, from 29% to 40%,	
		56% say			was ‘car theft and vandalism’, a result	
		begging of			also supported by crime statistics for	
		concern; 55% say			Wellington City.	
		poor				
		lighting;				
Residents with access to		At home	At home	84%			
emergency items at home		(85%)	(83%)				
Residents with access to		new	At work	77%			
emergency items at workplace		(75%)				
Residents with access to		new	At place of	45.6%			
emergency items at place		education				
of education (if applicable)		(59%)				
Residents with access to		new	33.8%			
emergency items in						
motor vehicle						
Residents with access to		new	10%			
emergency items at other						
daily destination						

Social housing tenants who report good quality of life

new

Activity levels, obesity/health Source: Active NZ Regional tables Wellington 2017/2018

2017
(77%)

77%
[total of “extremely
good”
+ “very good” + “good”]
2018	2019
(75%) data not available

Data is reported on a regional basis for adults who state they have done any physical activity that was
specifically for the purpose of sport, exercise or recreation. Obesity data for Wellington not available.

Youth participation in sport and recreation. 5–17 year olds (surveyed on activity within last 7 days)

2017 –	2018 –
Wellington Wellington

participated; participated;

95.9%	- 95.6%

region	region

2019 data has not yet been published.

10.23 aver-

11.4 aver-
sample:646 sample:643

age hours, age hours,

NA

NA.

79%

Residents’ importance of sense of community in local neighbourhood
Social capital – residents’ response to “I have strong social or community networks
that I can draw on in Wellington”
Residents’ engaging in neighbourly actions “given help”
Proportion of residents who feel they could rely on their
neighbours for support following a natural disaster or other significant event
Diversity - residents valuing diversity. Measured as “different lifestyles and cultures” makes the city a better/ much better place to live.

62%

80%

81%	82.6%	83.8%

Resilient and cohesive communities and neighbourhoods
	new	75%	79%	
	new	64%	60%	

55%	
58%	
57%	
55%	
	new	69.6%	64.6%	

Public health and safety

Tāone tupu ora – Urban development	Tāone tupu ora – Urban development continued

Outcome & heading	Desired trend	2015/16	2016/17	2017/18	2018/19	2019/20 Trend
result	Comments	

 	
Outcome & heading	Desired trend	2015/16	2016/17	2017/18	2018/19	2019/20 Trend
result	Comments	

Housing affordability and supply

Growth and density

NA

NA

42.3%

NA

Proportion of houses within 100 metres of a public transport stop

45%	44.8%	42.3%

Average annual house price	$541,541; $583,454; $700,145; $759,282;	$818,857;
median
$825,000

5.69	

6.16	 1,428	

$564m	

$412m	

67%

46%

35%

56%	The average current house value	
and median house price as at	median	median	median	median		in Wellington City was up 7.8%	
June each year.	$600,000     $665,800    $680,500    $715,000		compared with a year earlier. Growth outperformed relative	
		to New Zealand, where prices	
		increased by 2.8%. The desired	
		trend is that the median house	
		price decreases over time as more	
		affordable houses are available for	
		sale. From the median values as at	
		June each year, these have been	
		increasing at an average	
		rate of 8% per annum.	
Overall housing affordability	4.65	4.89	5.47	5.41		Although housing in Wellington City	
(based on Housing Affordability		continues to be more affordable	
Index) Wellington		than New Zealand as a whole, the differential has decreased.	
Overall housing affordability	5.55	6.15	6.71	6.45		Housing affordability in Wellington	
(based on Housing Affordability		City has deteriorated, whereas	
Index) NZ		housing affordability in New Zealand has improved over the	
		past three years.	
Number of building consents –	614	869	1,136	978		On an annual basis the number	
new residential		of consents in Wellington City increased by 46.0% compared with	
		the same 12-month period a year	
		ago. The number of consents in	
		New Zealand increased by 8.1%	
		over the same period.	
Value of residential	$233m	$369m	$444m	$419m		This is a 34.4% growth from	
building consents		last year for Wellington City. By comparison the value of consents	
		in New Zealand grew only 4.4%.	
Value of commercial	$359m	$469m	$275m	$367m		Non-residential building consents	
building consents		to the value of $412 million were issued in Wellington City during	
		the year to June 2020. The value	
		of consents increased by 12.1%	
		in the year to June 2020. By	
		comparison the value of consents in	
		New Zealand decreased by -8.8%	
		over the same period.	
Healthy housing stock –	66%	66%	71%			
residents who report their			
home is insulated (adequate			
ceiling insulation)			
Healthy housing stock –	46%	45%	54%			
residents who report their			
home is insulated (adequate			
under floor insulation)			
Healthy housing stock – residents	31%	36%	47%			
who report their home is warm			
and dry (rarely or never cold)			
Healthy housing stock – residents	58%	62%	70%			
who report their home is warm			
and dry (rarely or never damp)			

City population	203,860	206,800	209,000	210,400

City population growth	1.2%	1.4%	1.1%	0.7%

Changes in an area’s population reflect (for example) natural increase (births minus deaths) and net mi- gration (arrivals minus departures).
A strong regional economy with plentiful job opportunities will help a region retain its population and attract new residents from other regions and abroad. (Population numbers are based on Infometrics population estimates).

Central city population	2016

Wellington
CBD: 20,690

2017:
Wellington
CBD: 21,260

2018:
Wellington
CBD 21,720

2019:
Wellington
CBD 22,890

Previous population estimates have been updated.

Residents’ perceptions of the city centre as an easy place to get to
Residents’ perceptions of the city centre as an easy place to use
Residents’ perceptions of the city centre as an easy place to enjoy
New Zealanders’ perceptions that Wellington is an attractive destination
Residents’ perceptions of urban design/urban form safety issues (ie graffiti, vandalism, poorly-lit public spaces etc.)

new

74%

new

81%

new

82%

81%

78%

80%

76%

Concerns increased
across three out of four reported
areas

Residents’ perceptions of the attractiveness of the central city

Improve- ments perceived against graffiti and vandalism
88%

Some improve- ments perceived

Concerns increased across all reported
areas

86%

80%

Residents’ perceptions of the attractiveness of their local suburbs

50%

48%

55%

Residents’ perceptions of safety
– feelings of safety in the city at night and during the day; in home after dark; in the city centre during the day; walking alone in their neighbourhood at night; in the city centre after dark.

In city centre after dark
81%

after dark

In city    In the city centre    after dark

75.8%   and during
the day (97.5%);
in home after dark (97.7%);
walking alone in their neigh-
bourhood at night (81.5%)

(75.9%)

See Supplementary table on page
154. Concerns around ‘vandal- ism’ and ‘public areas’ increased, however concerns around ‘alcohol and drug problems’ and ‘begging’ decreased markedly.

There has been a 9 percentage point increase in those that disagree the city is ‘lively and attractive’ and generally responses were less positive which could be as a result of conducting the survey during COVID-19 restrictions, when many people were working from home.
This is an encouraging result as there has also been increases across measures of local suburban areas being well utilised, feeling safe and being well-designed
A decrease in feelings of safety in the city after dark are largely due to increase of 4% of those that feel
'somewhat unsafe’. This is consistent with increased concern around poorly managed or dangerous public areas in the city.

In the city after dark (71.4%)
and during
the day (97.4%);
in home after dark (98.1%);
walking alone in their neigh-
bourhood at night (80.9%)

62%

79%

73%

71%

78.7%

Concerns increased
across 7 out of
13 areas reported
areas
69%

Central city population – growth	3.1%	2.7%	0.2%	5.4%

High-quality urban form

Trend results are inconclusive as what appears to be a lift in 2020 could be a stabilisation of declining percentage increase.

Tāone tupu ora – Urban development continued

Outcome & heading	Desired trend	2015/16	2016/17	2017/18	2018/19	2019/20 Trend
result	Comments	

Heritage protection

Residents’ perceptions that heritage items contribute to the city’s unique character	91%	92.5%	92%	87%		The percentage of residents that disagreed remained the same as last year however the drop was a result of more residents changing from more positive responses to neutral response.	
Residents’ perceptions that heritage items contribute to the communities’ unique character	71%	75%	76%	66%		12 percent of residents changed from being strongly supportive to being less positive. Some of the comments from residents expressed during the survey were over the cost to improve resilience of heritage buildings and the time it is taking
to complete the required remedial works.	

Resilience

Waka – Transport

Outcome & heading	Desired trend	2015/16	2016/17	2017/18	2018/19	2019/20 Trend
result	Comments	

Residents’ perceptions that peak traffic volumes are acceptable
Residents’ perceptions that the transport system allows easy access to the city

43%

42%

38%

35%

63%

62%

64%

37%*

Residents (%) who agree the transport system allows easy movement around the city – vehicle users (easy to drive)

45%

46%

42%

39%

Residents (%) who agree the transport system allows easy movement around the city – vehicle users and pedestrians (easy to cycle)

New

37%

31%

29%

Residents (%) who agree the transport system allows easy movement around the city – pedestrians (easy to walk)

91%

93%

93%

93%

Residents (%) who agree the transport system allows easy movement around the city – public transport

New

44%

Mode of resident travel – daily commute (car)

32%

27%

25%

30%

Mode of resident travel – daily commute (bus)

30%

28%

31%

28%

Mode of resident travel – daily commute (walk)

23%

24%

24%

24%

*The 2018/19 result was impacted by negative perceptions of the restructure of the bus network
by GWRC.
The intention is to make it easier to use public transport and active
modes rather than to support travel by private vehicles. This approach appears to be gaining traction in the results. With resident also
experiencing increasing dissatisfaction with peak traffic volumes.
13% of our residents surveyed state that bicycling is their main travel method, which gives us a sample size of 260 residents. Over the last four years the numbers that think it is ‘very difficult’ to cycle around the city has grown to 20%, with another 37% that believe it is ‘quite difficult’.
The result for 2020 includes feedback from residents with many comments centered around foot- paths being diverted around seismic repair work across the city and the shared path challenges with bikes and scooters.
This is the second year this question has been asked and improvement is encouraging. Sample size of those that had used public transport also increased 32% from 442
to 583.
The intention is to discourage travel by private vehicles by encouraging the use of public transport and active modes. This approach appears to be gaining traction in the results.
More analysis is required to understand in what ways residents have changed modes of transport. We have increases across, motorbike, train, bike, walking and scooter use.
Based on the sample size of 291 the increase in 2020 is not statistically significant. However, there may have been positivity towards walking during the COVID-19 restrictions.

Mode of resident travel –

daily commute (bicycle)	

8%	10%	12%	10%

14%

30%

23%

22%

61%

88%

25%

37%

37%

53%

Network efficiency and reliability

Proportion of residents who feel	new	85.3% safe in the event of a moderate	85%		
earthquake at home			
Proportion of residents who feel	new	69% safe in the event of a moderate	72%		
earthquake at workplace			
Proportion of residents who feel	new	76% safe in the event of a moderate	66%		
earthquake at place of education			
Proportion of residents who	New	In motor		
feel safe in the event of a	vehicle		
moderate earthquake at other	64%; Other		
daily destination	daily destination		
	23%		
Proportion of residents who	new	27%
have checked their dwelling to	13%		
improve its seismic resilience			
in the past year			
Proportion of residents who have	new	14% taken action to improve its seismic	7%		
resilience in the past year			
Number of earthquake-	717	593	563	As at July 2020 the earth-	
prone buildings	building	building	building	quake-prone building (EPB) register	
listed as	listed as	listed as	contained 563 buildings of which	
earthquake earthquake	earthquake	132 were identified with heritage	
prone prone down
from 717	prone	status and 135 identified as Priority Buildings. In 2017 the legislation	
last year
Number of earthquake-	new    Down 124
prone buildings – Change

Number of earthquake-prone	new Of the 593	
Down 30*
See comment
Of the 563	that governs EPB’s was amended requiring Councils to re-issue all EPB’s with new notices in a national standardised format. During the 2019/2020 year, the Resilience Team targeted efforts to re-issue	
buildings and lifeline routes	buildings	buildings	all notices in the new format, which	
listed as	listed as	means the number of EPB notices	
earthquake	earthquake	in the register does not neatly com-	
prone 54 are	prone 135 are	pare to last year.	
identified	identified		
as priority	as priority		
Residents who recall receiving	new	22% Wellington-specific resilience	37%		
information in the past year			
(eg earthquake preparedness			
via digital, media or community			
channels)			
Residents (%) who believe that	new	42% Wellington City Council is making	32%		
adequate progress on addressing			
building resilience-related issues			
in the city			
Seismic resilience index	Baseline is	Baseline is	Most of the measures selected for this	
being es-	being es-	index are sourced from the residents’	
tablished	tablished	monitoring survey, conducted during COVID-19 restrictions, therefore	
		results are not stable enough to	
		determine baseline for the index.	
		See supplementary data page 155	

Waka – Transport continued

Outcome & heading	Desired trend	2015/16	2016/17	2017/18	2018/19	2019/20 Trend
result	Comments	

Residents’ perceptions that cycling is safe in the city for themselves
Residents’ perceptions that cycling is safe in the city for their children (if applicable)
Residents’ perceptions of reliability of public transport services
Residents’ perceptions of affordability of public transport services
Residents’ perceptions of quality of public transport services
Proportion of school children walking to school (at least once a week)
Proportion of school children cycling to school (at least once a week)
Proportion of school children scoot or skate to school (at least once a week)

New

26%

New

7%

New

16%

41%

45%

45%

38%

New

22%

65%

73%

67%

49%

New

22%

20%

New

16%

29%

9%

34%

41%

33%

68%

20%

21%

Active mode promotion and public transport support	

Detailed key
performance indicators

Air quality monitoring
(ie nitrogen dioxide, carbon monoxide and particulate matter peaks)

No days in No days in No days in excess of	excess of	excess of monitoring monitoring monitoring guidelines guidelines guidelines

Personal risk of serious injury or fatality for all road users (number resulting from road crashes)

97

78

70

87

See supplementary table on page 156 for summary of levels of air pollution measured at the Wellington central monitoring station by calendar year. Key indicator pollutants measured are nitrogen dioxide, carbon monoxide and particulate matter measured as PM10 and PM2.5. All pollutants met national standards and guidelines.
PM10 was higher in 2019 due to dust and smoke from the Australian bush fires late in the year.
In 2019 this measure changed to report as financial years rather than YTD against calendar year. The result to June 2020 was 43.

Change from previous year in the number of road crashes resulting in fatalities and serious injury*
Residents’ perceptions of transport-related safety issues (ie issues of most concern)

up 15

down 19	Down 8

Up 17

Traffic or		Traffic or		Traffic or		Traffic or busy roads busy roads busy roads busy roads (33%)	(33%)	(36%)	(39%);
Dangerous Dangerous Dangerous Dangerous driving    driving      driving      driving (30%)	(33%)        (33%);         (40%)
Car theft or Car theft or Car theft or Car theft or vandalism vandalism vandalism vandalism (32%)	(29%)	(27%)	(29%)

See supplementary table on page
156. Additional info has been added to previous years for comparison. There was a considerable increase in perceived concern on “car theft and vandalism”. This response could be associated with the timing of the survey during COVID-19 lockdown, however this response is supported by public police data that recorded a spike in motor vehicle theft and related instances in May.

NA

Traffic or busy roads
(42%)
Dangerous
driving (41%)
Car theft or vandalism
(40%)

NA

No days in	No
excess of	trend monitoring guidelines

Environmental impact and safety

Pārongo ā-tāone – Governance
.
Performance measure	2017/18	2018/19 Actual		Actual	2019/20
Actual	2019/20		%	Variance Comments Target	Variance	
1.1 Mana Whakahaere, Pārongo me ngā mahi whai wāhi | Governance, information and engagement	

Facilitating democratic decision-making

Meeting and committee agendas (%) made available to the public within statutory timeframes
(2 working days prior to meeting)	100%	100%	98%	100%	-2%		
Meeting and committee agendas (%) made available to the public at least 4 days prior to meetings	New	97%	92%	70%	31%	The rationale of this measure is to give councillors and the public more time to review committee agendas and papers to enhance involvement in decision making. The exceeded result shows the management of the forward programme and the associated report timelines has been successful, with 57 out of 62 meeting agendas were distributed at least 4 days prior to the scheduled meetings for the year.	

Community engagement

Residents (%) who believe they have adequate opportunities to have their say in Council activities	New	42%	41.7%	45%	-7%		
Residents (%) who state they are satisfied with how the Council makes decisions	New	34%	29.7%	45%	-34%	The result is reflected in the comments made by respondents relating to the perceived cohesiveness of Council as
a whole.	
Providing information and a point of contact

Contact Centre – Contacts responded to within target timeframes (calls answered within 30 seconds)
Contact Centre – Contacts responded to within target timeframes (emails responded to within 24 hours)
City Archives – users (%) satisfied with services and facilities

78%

80%

85%

-5%

100%

99%

100%

0%

New

86.6%

75%

-1%

Data was not captured after Q2 due to COVID-19

Residents (%) who agree that Council information is easy to access (via website, libraries, social media, newspapers etc)

New	Average 46%

Baseline being established

NA	NA

Residents (%) who agree that the Council is proactive in informing residents about their city

New

45%

70%

-38%

This measure was previously reported as the average of “Yes” responses across four communication channels. We now ask the level of agreement “strongly agree” to “strongly disagree” across website, social media, libraries, and newspapers, therefore previous year’s result could not be used to establish
baseline. We strive to improve and adapt accessibility to meet the changing needs of our residents.
There was 6% increase in residents that disagree. Respondent comments centered around information about the central library and transport infrastructure.

Result up to Q2 was
74%
Website 68.1%
Libraries 63.0%
Social Me- dia 51.7% News- papers 36.6%

43.3%

99.6%

80.6%

The following are sources for the Outcome indicator results
WCC Residents Monitoring Survey 2020, Nielsons, National reputation survey
Wellington City Council business units
Infometrics, Statistics NZ, New Zealand Census, ProfileID,
Education NZ, Sport New Zealand
Ministry of Health, Ministry Business, Innovation and Employment,
New Zealand Transport Authority, Greater Wellington Regional Council
Council Controlled Organisations
*mandatory measure

Pārongo ā-tāone – Governance continued

Performance measure	2017/18
Actual	2018/19
Actual	2019/20
Actual	2019/20	%
Target	Variance	Variance Comments	
Official information requests (%) handled within Local Government Official Information and Meetings Act legislative timeframe	New	97%	94%	90%	5%		
1.2 Rangapū Māori/Mana Whenua | Māori and mana whenua partnerships	

Mana whenua satisfaction with their relationship with Wellington City Council	Satisfied	Both parties satisfied	Both parties somewhat satisfied	Satisfied		
The extent to which (how satisfied) mana whenua partners believe (are) that the Council is meeting its obligations under
Te Tiriti o Waitangi with respect to Partnership, Protection and Participation (narrative-based measure based on interviews)	new	Both parties somewhat satisfied	One partner
unsure and one expressed broad range from very positive to concerned.	Satisfied	Respondents have expressed ongoing challenges with iwi engagement, the resource consent process and Council being Council proactive and strategic
in its engagement with Iwi. The capacity and remuneration of iwi to provide input into the Council’s work is mentioned as a barrier to iwi engagement.	

Relationship with mana whenua

Te Taiao me te Hanganga – Environment & infrastructure

Performance measure	2017/18	2018/19 Actual		Actual	2019/20
Actual	2019/20		%	Variance Comments Target	Variance	
Māori residents (%) who agree	67% that the Council is taking an
active role in revitalising Māori cultural heritage	38.4%	75%	-49%	The COVID lockdown status at the time of the survey is likely to have impacted the sample size and the results.	
2.1 Parks, beaches and open spaces	

Utilisation

Number of visitors to Wellington Botanic Gardens and Otari-Wilton’s Bush	1,324,892	1,246,162	1,312,556	1,280,000

2102	3%

-46%	

No sessions were undertaken in quarter 4 and so overall numbers are lower due to COVID-19.	
Number of formal education attendees at Council programmes (School & Community)	New	2,102	1,145				

Residents (%) satisfied with the quality and maintenance of green open spaces (local parks and reserves, playgrounds, botanic gardens, beaches and coastal areas, walkways and trails, waterfront, forested areas and green belts)	84%	87%	82%	90%	-9%	

Attractiveness

Engaging Māori residents in decisions
Māori residents (%) who believe that they have adequate opportunities

69%*

64.2%

75%	-14%	*Results include the total of those who selected ‘strongly agree’, ‘agree’ and ‘neither agree nor disagree’ as “adequate

Protecting and enhancing our biodiversity

to have their say in decision-making

opportunities” was believed to include ambivalence. Result is similar to last year and also reflects respondent concerns on opportunities for participation and

Establish 2 million native plants by 2025
Hectares of high-value biodiversity sites covered by coordinated pest

1,691,656  1,788,834
New	296

1,815,000	4%

1,890,068

311

296	5%

 	consultation.	

49.4%

Promoting Māori culture

management	

$3.98

Affordability

Māori residents (%) who agree that the Council is taking an active

68%

75%	-34%	The COVID lockdown status at the time of the survey is likely to have impacted

Cost to the ratepayer per visitor to the Wellington Botanic Gardens

New	$4.23

$4.23	6%

role in revitalising te reo Māori

the sample size and the results.

and Otari-Wilton’s Bush	
Community engagement

Te Taiao me te Hanganga – Environment & infrastructure continued

Performance measure	2017/18
Actual	2018/19
Actual	2019/20
Actual	2019/20	%
Target	Variance		Variance Comments	
Proportion of households engaged in Council-coordinated pest trapping	19%	31%	27%	31%	NA	NA	When the target was set in previ- ous years, the measure included all
households that have signed up for the Predatory Free Wellington programme across the city. This year we used our annual survey of Wellington residents, therefore the results are not comparable to target.	
Number of plants supplied for community planting	New	37,072	31,826	35,000	-9%	
		
2.2 Waste reduction and energy conservation	
Recycling

Residents (%) who use recycling services regularly	97%	94%	93%	90%	3%		
Affordability

Cost per household (per annum) for kerbside recycling	New	$85.92	$82.01	$85.92	5%		

Customer satisfaction

Residents (%) satisfied with kerbside recycling service	76%	65%	74%	85%	-12%	Wellington City Council put its recycling collection on hold during the COVID-19 Alert Level 4 lockdown; the health and safety of staff was at the heart of this decision. Quote -”I didn’t realise how much I appreciated the great job the waste collectors do until we didn’t get it collected over COVID-19 lockdown.
Thank you for what you do.”	
Users (%) satisfied with waste collection service	79%	71%	80%	90%	-11%	Keeping essential services, including rub- bish collection, running smoothly during the COVID-19 lockdown was a priority
for Council. Although target was not met there has an uplift from previous year.	

Sustainable landfill operation

Estimated efficiency of gas	40% capture system (% of estimated
gas produced that is captured and destroyed)	47%	40%	18%	Our gas capture rate is slightly better in 2020, and we hope to improve the gas capture rate over time by keeping our tip face small and through better capping material and pipes.	

Waste minimisation activities

Volume of waste diverted from landfill (tonnes)	18,174	19,526	17,597	20,000	-12%	Up to the end of Quarter three the waste diverted result was tracking to within 5% of target. The landfill closure during COVID-19 lockdown meant that the Quarter four result dropped to 68% of target which impacted the year end result.	
Number of participants in waste minimisation and education programmes	new	3,066	4,082	3,066	33%	The Waste Minimisation team delivered around 90 events across the year, reaching an audience of 2,350.	

Energy conservation

Te Taiao me te Hanganga – Environment & infrastructure continued

Performance measure	2017/18
Actual	2018/19
Actual	2019/20
Actual	2019/20	%
Target	Variance		Variance Comments	
Estimated energy savings (kWh)	4,055,159	3,890,568	7,950,153	5% saving
2,541,201	213%	
	Target was exceeded partly due to COVID-19 lockdown and the reduction in services, the shutdown of MOB and other buildings being constructed and a few energy efficiency programmes.	
WCC corporate greenhouse gas emissions (tCO2e)	90,076	104,564	115,054	Baseline being es- tablished	NA	NA	The increase is due to a different methodology applied to measuring wastewater emissions. We will use the upcoming year to apply that methodology back-cast to all years and create new baseline to achieve 2050 target.	
2.3 Waimāori | Water supply*	
Clean and safe

Compliance with Drinking	Compliant Compliant Water Standards for NZ 2005
(revised 2008) (Part 4 bacterial compliance criteria)*
Compliance with Drinking	Compliant Compliant Water Standards for NZ 2005
(revised 2008) (Part 5 protozoal compliance criteria)*	Compliant

Compliant	Compliant	0%	

Compliant	0%		
Meeting customer expectations

Number of complaints about the drinking water’s clarity, taste, odour, pressure or flow, continuity of supply, and supplier responsiveness, expressed per 1000 connections*

13.35

12.01

<20 per
1000
connections

36%

Customer complaints reported to WWL by the council’s contact centres were under reported. Proposed remedial action: WWL will work with Council
to improve the complaint reporting procedures.

 	

12.79 per
1000
connections

Median response time for	46	48	117.58
minutes

16.08
hours

139.79
hours

14.42
days

0.35
hours	<60	-96%	The end of year median attendance	
attendance for urgent call outs				minutes		time is slower than target due to work	
(minutes)** ***						volume, resource constraints, and resource allocation.	
Median response time for	3.77	4.38		<4	302%	The end of year median resolution time	
resolution for urgent call				hours		is slower than target due to a backlog	
outs (hours)** ***						of work carried over from the previous service delivery arrangement, an increase	
						in callouts (water leaks), resource con-	
						straints, complexity of repair processes	
						due to increasing health and safety	
						requirements, traffic management and	
						service mark-outs.	
Median response time for	52.8	74.28		<36	-288%	The end of year median attendance time	
attendance for non-urgent				hours		is slower than target due to work volume,	
call outs (hours)** ***						resource constraints, and resource allocation.	
Median response time for	3.72	4.89		<5	-188%	The end of year median resolution time	
resolution for non-urgent				days		is slower than target due to a backlog	
call outs (days)** ***						of work carried over from the previous service delivery arrangement, an increase	
						in callouts (water leaks), resource con-	
						straints, complexity of repair processes	
						due to increasing health and safety	
						requirements, traffic management and	
						service mark-outs.	
Water supply interruptions	New	0.94		<0.94	63%	Data was not able to be collected in	
(measured as customer hours)				hours		Q1 & Q2. From January 2020 data was collected and reported so therefore the	
						data reflects half yearly results.	

Continuity of supply and resolution of faults

Energy cost ($)

$6,548,943 $6,328,978

< $6,328,978

8%

$5,797,616 42,095,975

Amount of energy used (kWh)	54,064,906 50,824,029

Reduce by 5%
48,282,828

13%	As part of the smarter buildings initiative, technology that controls the atmospheric conditions inside Wellington Museum and the City Gallery has reduced the annual energy consumption of these buildings by

37 percent and 25 percent respectively.

Note on response times for previous four KPIs above:
** Attendance times issue: The WWL records for attendance at events were insufficient to enable results to be verified, particularly in Quarter
1. By applying E-Road geo-spatial data, WWL has been able to confirm 75 percent of attendance by matching the presence of one of its vehicles to addresses in service request records. Proposed remedial action: Better recording and reporting of performance will be achieved as part of a wider programme of improvements and the development of a more robust performance framework. Specific activities will include: Staff training for field crews and their supervisors; Continuing to match vehicle attendance using the E-Road data. *** Resolution times issue: WWL could not
independently verify fault resolution response times. Its proposed method of corroborating the data by matching timesheets to job sheets did not enable the availability of sufficient data or for it to be matched. Proposed remedial action: Internal system and/or manual controls will be built into the service request workflow to enable results to be certified. In practise this means implementing checking procedures to certify all urgent service requests on a daily basis and non-urgent service requests will be checked on a sample basis as part of a wider internal audit programme

* Denotes mandatory measure

Performance measure	2017/18	2018/19 Actual		Actual	2019/20
Actual	2019/20		%	Variance Comments Target	Variance	
2.4 Waipara | Wastewater	

Te Taiao me te Hanganga – Environment & infrastructure continued	Te Taiao me te Hanganga – Environment & infrastructure continued

Performance measure	2017/18
Actual	2018/19
Actual	2019/20
Actual	2019/20	%
Target	Variance	Variance Comments	

Efficiency and sustainability
Percentage of real water loss from networked reticulation system and description of methodology used*

17%	20%

19%

<17%	-12%	The ability of WWL to report this measure
is impacted by low meter coverage. In the absence of meters across the Wellington region, WWL will continue to apply the current “Benchloss” methodology to calculate water loss. The regional result (19 percent) is reported for each Council, rather than council-specific results. These have a confidence interval of between 7% and 32%.
The end of year result is reported as a mean regional water loss percentage with a 95 percent confidence interval of between 7 percent and 32 percent. The result will be produced using an updated statistical methodology that aligns with
the "Benchloss approach" described in the Water New Zealand Water Loss Guidelines and meets the requirements of the
Non-Financial Performance Measure Rules 2013 specified by the DIA Reporting.
Wellington city is not uniformly covered by water meters so there is significant variance in the usage information and confidence intervals for Council specific results. Therefore, Wellington Water are reporting this result as the more accurate regional percentage until more data is available at a Council level.

Compliance and sustainability

Average drinking water consumption litres per resident per day*

361	360.52

365	0%

364.8
litres

Dry weather wastewater	0.17	0.83	4.95	0	-100%	Not met due to a number of blockages	
overflows, expressed per			per 1000	per 1000		within the network and at pump stations	
1000 connections*			connections	connections		caused by rags, fat and root infiltration. Note: The original methodology WWL	
						applied to generate results did not	
						follow DIA guidelines. WWL have now	
						implemented a methodology taking	
						on-board the DIA guidelines and are	
						confident the numbers reported using	
						the new methodology fairly represent	
						the number of overflow events. The	
						criteria applied to determine the number	
						of events included a multi-word search	
						which did not rely on identifying the	
						word "blockages" in isolation. Removing	
						events that included the word blockages	
						from the current results would result	
						in under-reporting of these events.	
						The target is zero for this measure and	
						regardless of the finer details of the	
						methodology, the number of events	
						would result in hundreds of events.	
						Proposed remedial action:	
						WWL will review and improve the meth-	
						odology to improve the accuracy and	
						reliability of results. This will include:	
						1 Staff training to ensure wide	
						understanding of the definition of a	
						dry-weather overflow as "wastewater	
						spilling to the surface.	
						2.Updating field crew job requirements	
						to include a mandatory step of con-	
						firming the overflow event by taking a	
						photograph of the job site.	
Compliance with the resource							
consents for discharge from the							
sewerage system, measured by							
the number of:							
Abatement notices	0	0	0	0	0%		
Infringement notices	0	0	0	0	0%		
Enforcement orders	0	0	0	0	0%		
Convictions*	0	0	0	0	0%		

litres

Note on response times for previous four KPIs above:
** Attendance times issue: The WWL records for attendance at events were insufficient to enable results to be verified, particularly in Quarter
1. By applying E-Road geo-spatial data, WWL has been able to confirm 75 percent of attendance by matching the presence of one of its vehicles to addresses in service request records. Proposed remedial action: Better recording and reporting of performance will be achieved as part of a wider programme of improvements and the development of a more robust performance framework. Specific activities will include: Staff training for field crews and their supervisors; Continuing to match vehicle attendance using the E-Road data. *** Resolution times issue: WWL could not

independently verify fault resolution response times. Its proposed method of corroborating the data by matching timesheets to job sheets did not enable the availability of sufficient data or for it to be matched. Proposed remedial action: Internal system and/or manual controls will be built into the service request workflow to enable results to be certified. In practise this means implementing checking procedures to certify all urgent service requests on a daily basis and non-urgent service requests will be checked on a sample basis as part of a wider internal audit programme.

Meeting customer expectations
Number of complaints about the wastewater odour, system faults, blockages, and supplier respon- siveness, expressed per 1000 connections*	16.5	16.23	17.19 per 1000 con- nections	≤30 per 1000 con- nections	43%	Customer complaints reported to WWL by the Council's Contact Centre were un- der reported. Proposed remedial action: Wellington Water will work with Council to improve the procedures.	

Continuity of service and resolution of faults
Number of wastewater reticulation incidents per km of reticulation pipeline (blockages)	0.47	0.52	0.65 per
km	≤0.8 per
km	19%	Measure is reported as exceeded. Planned flushing programme plus the reduced sewer volumes in Wellington due to COVID-19.	
Median response time for wastewater overflows* (attendance time in hours)** ***	0.72	0.72	1.57 hours	≤1 hour	-57%	The end of year result attendance time is slower than target due to work volume, resource constraints, and resource allocation.	
Median response time for wastewater overflows* (resolution time in hours)** ***	2.9	3.12	8.88 hours	≤6 hours	-48%	The end of year resolution time is slower than target due to work volume, re- source constraints, complexity of repair processes due to increasing health and safety requirements, traffic management and service mark-outs.	

*   Denotes mandatory measure	* Denotes mandatory measure

Te Taiao me te Hanganga – Environment & infrastructure continued	Te Taiao me te Hanganga – Environment & infrastructure continued

Performance measure	2017/18	2018/19 Actual		Actual	2019/20
Actual	2019/20		%	Variance Comments Target	Variance	
2.5 Waiāwhā | Stormwater	

 	
Performance measure	2017/18	2018/19 Actual		Actual	2019/20
Actual	2019/20		%	Variance Comments Target	Variance	
2.6 Ngā painga kukume Papa Atawha | Conservation attractions	

Continuity of service and resolution of faults

0

0.2
per km

0 per
1000

0 minutes

Number of flooding events*	2	5

≤5	100%	No flooding events recorded in reporting period.

Wellington Zoo

$15.44

$25.86

$5,704
$20.42 139%

8.9

30

8,058

220,607

Wellington Zoo –
Total number of visitors

249,701	252,973

254,000	-13%	Visitor numbers were directly impacted
by COVID-19 restrictions. Wellington Zoo

Number of pipeline blockages per km of pipeline

Number of habitable floors per 1000 connected homes per flooding event*
Median response time to attend
a flooding event* (minutes) ** ***
Note on response times for KPIs above:

0.03	0.02

0.013	0.14

45	48

≤0.5
per km

0.14 per 1000

≤60 minutes

60%	Measure appears to be exceeded; Wellington Water Ltd calculation is based on 204 blockages across 1074km of pipelines.

0%	         No flooding events reported.

100%	No flooding event to attend.

Wellington Zoo – Education visitors

Wellington Zoo – Visitor satisfaction (rating out of 10)

10,414	12,023
new	9.1

re-opened on Saturday 16 May (at Alert Level 2) to Zoo Crew members and was free to all visitors from 18 May through 30 June. The Zoo hosted 50,891 visitors during its free entry campaign.
10,500	-23%	Result is directly impacted by the reduced number of visitors due to COVID-19, meaning cancellation of school programmes.
8.5	5%

** Attendance times issue: The WWL records for attendance at events were insufficient to enable results to be verified, particularly in Quarter
1. By applying E-Road geo-spatial data, WWL has been able to confirm 75 percent of attendance by matching the presence of one of its vehicles to addresses in service request records. Proposed remedial action: Better recording and reporting of performance will be achieved as part of a wider programme of improvements and the development of a more robust performance framework. Specific activities will include: Staff training for field crews and their supervisors; Continuing to match vehicle attendance using the E-Road data. *** Resolution times issue: WWL could not
independently verify fault resolution response times. Its proposed method of corroborating the data by matching timesheets to job sheets did not enable the availability of sufficient data or for it to be matched. Proposed remedial action: Internal system and/or manual controls will be built into the service request workflow to enable results to be certified. In practise this means implementing checking procedures to certify all urgent service requests on a daily basis and non-urgent service requests will be checked on a sample basis as part of a wider internal audit programme.

Wellington Zoo – Conservation Programme – Number of vulnerable, endangered or critically endangered species (IUCN Red List and DOC National list) in the Zoo’s collection

Wellington Zoo – Average WCC subsidy per visitor ($)

Wellington Zoo – WCC full subsidy per visitor ($)

new	not
reported

$12.98	$13.12

$20.71	$20.73

20	50%	During the year the Zoo’s conservation strategy was developed and aligned with the overarching strategy (Tinana and Whānau). It focuses on conservation efforts, resources and investment until 2023. It reinforces Me tiaki, kia ora as the Zoo’s kaupapa and brings together conservation and sustainability (UN Sustainable Development Goals) for saving wildlife and wild places.
$13.41	-15%	Result is directly impacted by the reduced number of visitors due to COVID-19
$21.34	-21%	Result is directly impacted by the reduced number of visitors due to COVID-19

Days (%) during the bathing season (1 November to 31 March)	100%	99.8%	86.2%	90%	-4%		
that the monitored beaches are							
suitable for recreational use							
Monitored sites (%) that have a rolling 12 month median value for	93%	78%	72%	90%	-20%	There are 12 monitored freshwater sites. Consented streams above rolling median	
E. coli (dry weather samples) that						of 1000 cfu/100ml:	
do not exceed 1000 cfu/100ml						Sites that did not comply are:
Bowen Street, Davis Street, Evans Bay,	
						Island Bay, Taranaki Street, Te Aro at	
						Jervois Quay, Tory Street, Waring Taylor	
						Street; Overseas Terminal, Newlands	
						at Gorge and Tyers at Gorge.	
						In January 2020 the consent requirements	
						in the Global Stormwater Consent reduced	
						the number of monitored sites from	
						43 to 32. The majority of the remaining	
						32 sites all had a rolling median above	
						1000 cfu/100ml E.coli.	
Compliance with the resource							
consents for discharge from the							
stormwater system, measured by							
the number of:							
Abatement notices	0	0	0	0	0%		
Infringement notices	0	0	0	0	0%		
Enforcement orders	0	0	0	0	0%		
Convictions*	0	0	0	0	0%		

Wellington Zoo – Total ownership cost to Council ($000) Wellington Zoo – Average income per visitor ($)
Wellington Zoo – Ratio of generated

$5,171	$5,249
$16.77	$17.53
new	134%

$5,420	-5%
$19.56	4%
146%	-5%

Trust income as % of WCC grant.	

ZEALANDIA – Number of Visitors	132,337	138,141	143,367

8,051

14,021

95%

$ 7.20

$12.04

$37.08

86%

$1,049,397

$382,866

$1,261,470	118,100	21%	On 14 May ZEALANDIA reopened
(at Alert Level 2) to members and on	
				Saturday 16th May it opened to the	
				public with a free entry campaign which	
				attracted 35,150 visitors up to 30 June	
				2020. Council provided financial support	
				to help fund the free entry initiative.	
ZEALANDIA – Number of Educa-	9,316	11,727 tion visits		8,800	-9%		
ZEALANDIA – Number of	10,886	10,932		11,000	27%	A 12% uplift in memberships recorded in	
Individual memberships				Q4 as Kiwi support local attractions grew as a result of COVID-19 travel controls.	
ZEALANDIA – Customer	New	97% Satisfaction (%)		95%	0%		
ZEALANDIA - Cash subsidy (grant)	$ 6.31	$ 6.21		$ 8.54	16%	Grant shared across a larger than	
per visit ($)				budgeted number of visitors, helped by the WCC sponsored free entry campaign	
				in response to the pandemic.	
ZEALANDIA - Full cost per visitor	$13.71	$13.44		$14.95	19%	Cost shared across a larger than	
($)				budgeted number of visitors.	
ZEALANDIA - Average revenue	$31.44	$32.85		$26.74	39%	Solid increase on previous year, with	
per visitor ($)				Q4 uplift possibly linked to appeal for public support to close funding gaps.	
ZEALANDIA - Non-Council grant	New	97% revenue equating to >75% of		>75%	15%	Result linked to special funding appeal.	
overall income (%)					
ZEALANDIA - Non-Council	$461,000 $ 697,089		$ 275,000	282%	In early May ZEALANDIA launched a spe-	
donations & funding ($)				cial appeal to help ZEALANDIA as a result of the income loss caused by COVID-19.	
ZEALANDIA - Membership	$329,264	$338,774		$318,300	20%	ZEALANDIA has 14,148 members as at	
subscription revenue ($)				30 June, up 3,216 (29%) on the same time last year with corresponding lift	
				in subscription revenues.	
ZEALANDIA - Net surplus (loss)	New	$778,119		$331,100	281%	Higher than budgeted admissions,	
before depreciation and tax $				grants and bequests and tight cost control (particularly in response to	
				COVID-19) has delivered a strong result.	

ZEALANDIA

 	

Meeting customer expectations
Number of complaints about stormwater system performance per 1000 connections*

7.65	8.51

11.42 per 1000 con- nections

43%

≤20 per 1000

connections

43%	Customer complaints reported to WWL by the council’s contact centres were un- der reported. Proposed remedial action: Wellington Water will work with the council to improve the procedures.

Residents (%) satisfied with the stormwater system

62%	51%

75%	-43%	Satisfaction is down significantly on previous years and reflects residents are expressing concerns with both

 	wastewater and stormwater connections.  

* Denotes mandatory measure

Whanaketanga ōhanga – Economic development

Performance measure	2017/18	2018/19 Actual		Actual	2019/20
Actual	2019/20		%	Variance Comments Target	Variance	
3.1 City promotions and business support	
Business Improvement Districts

Total voluntary rates collected	new $289,000 (from Business Improvement	$335,000	$335,000	0%		
Districts) and distributed				
Total voluntary rates distributed	new $289,000	$335,000	$335,000	0%		

WREDA – WellingtonNZ

Oranga ahurea – Cultural wellbeing

Performance measure	2017/18	2018/19 Actual		Actual	2019/20
Actual	2019/20		%	Variance Comments Target	Variance	
4.1 Arts and cultural activities	

High quality events

Attendees (%) satisfied with Council-delivered arts and cultural festivals	82%	81%	86%	90%	-4.8%		
Estimated attendance at
WCC-supported and delivered events	733,962	619,232	Est. 516,218	619,232	-17%	The numbers are lower than previous years due to no Fireworks or Ahi Ka in the 2019/20 year and major events not held 2020 due to COVID-19.	

Arts and cultural sector support

Users (%) satisfied with
Toi Pōneke services and facilities	89%	84%	80%	90%

90%	-11%

2%	Results are based on small sample of 206 users which may have impacted the result.	
Users (%) satisfied with Toi Pōneke staff	98%	93.5%	92%				

WREDA – Positively Wellington		New	27.4%

$13.36m

325

NA 3,200
$2.388

21:1

516,945

558	30%	9%		Target was previously written “maintain	
Tourism partnership funding (%)							Council’s funding at less than 50% of total income” however measure is now	
							funding of WREDA % revenue from	
							commercial/non-council funding	
							(WREDA & CHQ combined)”.	
WREDA – Value of business events	New	$19.3m		$19m	-30%		Result was within 10% of target as	
($m)							at quarter three. Q4 results impacted by COVID-19 cancellations.	
WREDA – Total number of events	594	419		450	-28%		Was over 80% of target as at Q3	
held in Wellington venues							before impact of COVID-19 lockdown closed venues.	
WREDA – Wellington’s share of the multi day conferences (%)	20%	18%		19%	NA	NA		
WREDA – Net permanent and	3,409	3,600		2,605	23%		Actual arrivals relatively steady year	
long-term arrivals							on year – target was set too low based on a different dataset.	
WREDA – Total visitor spend ($b)	$2.53	$2.702		$2.640	-9.5%	
		
WREDA – Return on investment via out-of-Wellington spend per $1	21:1	22:1		20:1	5%	
		
WREDA – Total event attendance	733,962	619,232		700,000	-26%	
	Several major events had to be cancelled or postponed as a result of the COVID-19	
							pandemic.	
WREDA – Number of actively	New	472		445	25%		Tracking well up to Q3 then significant	
supported businesses through regional business partner programme							increase in response to COVID-19 support.	

Funding Success

Grant outcomes (%) achieved (through funded outcomes – four out of five – being met) –

93%	92%

91%

80%	14%	44 of the 48 reports received, shows that outcomes had been achieved as desired level (4 out of 5) or higher

Arts and Culture Fund	

Total visitors Museums Trust:

725,214	770,320	535,421	665,500

-20%

City Gallery Wellington

153,194	153,676	111,365	150,000	-25.8%

Wellington Museum

127,413	132,953	100,165	130,000

-23%

Cable Car Museum

269,028	288,889	192,915	256,000

-25%

Nairn Street Cottage

1,724

2,104

706	2,000

-65%

Capital E

113,414	137,015	86,821	70,500

23%

Space Place

60,441	55,683	43,449	57,000

-24%

Physical visitation was impacted by COVID-19 including no international visitors, limited domestic tourists and site closures from late March through to late May as well as reduced days and hours over June 2020.
Although physical visitation was impact- ed by COVID-19 closure, virtual visitation in the second half of the year achieved 86,579 against target of 75,000.
Although impacted by COVID-19 closure, virtual visitation in the second half of the year achieved 110,444 against target of 96,000.
Visitor numbers were slightly behind target at Q3 and the Q4 closure meant a 90% drop in visitors.
Nairn Cottage visitor numbers have been well behind target all year. Prior to COVID-19, marketing material and imagery was being refreshed to attract new audiences.
Capital E had already exceeded target 6 months into the financial year.
Visitor numbers were 6% ahead of target as at quarter three.

Wellington Museums Trust – utilisation

Wellington Museums Trust – Funding support
Wellington Museums Trust – Non-Council Revenue (trading and fundraising) ($000)	$ 3,834	$ 4,305	$3,674	$ 4,079	-9.9%		
Percentage of visitors who rate the quality of their experience (good or very good)	93%	91%	89.5%	90%	-1%		

Kaupapa Pāpori me ngā Mahi a Rēhia – Social and recreation

Performance measure	2017/18	2018/19 Actual		Actual	2019/20
Actual	2019/20		%	Variance Comments Target	Variance	
5.1 Recreation promotion and support	

High quality experience

Performance measure	2017/18
Actual	2018/19
Actual	2019/20
Actual	2019/20	%
Target	Variance	Variance Comments	
Kilbirnie Rec Centre	78,069	84,776	53,234	80,000	-33%	During quarter two of 2019/20 we implemented a new booking and	
						membership system. This meant the	
						way we track performance by capturing	
						usage of our swimming pools and	
						recreation centres has changed from	
						previous years, which is now resulting	
						in more accurate admission data.	
						Visit numbers would also have been	
						impacted by COVID-19.	
Nairnville Rec Centre	141,898	158,949	121,627	140,000	-13.1%	The Nairnville Rec Centre exceeded target up to the end of Q3 however	
						impact of COVID-19 saw only 20% of	
						usual volumes for Q4.	
Tawa Rec Centre	22,315	26,888	28,769	25,000	15%	Tawa Rec centre has been exceeding targets for the first three quarters of	
						the year.	
ASB Sports Centre	866,549	917,169	632,585	815,000	-22%	Lower utilisation as a result of closing during the COVID-19 pandemic lockdown.	
ASB Sports Centre court space utilisation (%) – peak	NA	65%	49.00%	65%	-25%	As above	
ASB Sports Centre court space utilisation (%) – off-peak	NA	59%	34%	50%	-32%	As above	
Number of uses of Leisure Card	150,166	156,195	94,429	148,000	-36.2%	Attendance has been significantly impacted March–June by COVID-19. WRAC	
						(Wellington Regional Aquatic Centre -	
						Kilbirnie) had closure of spray pool over	
						Christmas, Keith Spry Pools numbers	
						were impacted during the construction of	
						Waitohi. In addition, a new bookings and	
						membership system was implemented	
						in October 2019. This collects Leisure	
						Card information in a more detailed and	
						different way, which also contributed to	
						the annual result.	
Berhampore Golf course users	New	1,773	2,859	1,773	61%	The increase in numbers is due to disc golf now being played at the golf course,	
						it is casual play but there has been a pos-	
						itive uptake which is seen as an increase	
						in numbers.	

Kaupapa Pāpori me ngā Mahi a Rēhia – Social and recreation continued

User satisfaction (%) – pools	90%	97%	88%

88%

85%

94%

91%

98%	90%

90%

85%

85%

80%

90%	-3%

-2%

0%

11%

14%

9%	

Strong performance reflecting ongoing investment in Wellington sportsfield upgrades to international standard.
The dry winter 2019 meant that cancellations were minimised.	
User satisfaction (%) – recreation	86%	93%					
centres including ASB Sports							
Centre							
User satisfaction (%) –	73%	84%					
sportsfields (grass)							
User satisfaction (%) –	81%	91%					
sportsfields (artificial)							
Scheduled sports games and	71%	87%					
trainings (%) that take place							
(all sportsfields winter)							
Scheduled sports games and	97%	98%					
trainings (%) that take place							
(all sportsfields summer)							

62,095

97%

898,310

14%

84%

34%

Utilisation
Artificial sportsfield (%) utilisation – peak winter
Artificial sportsfield (%) utilisation – peak summer

Artificial sportsfield (%) utilisation – off-peak winter

79%	82%

39%	29%

16%	18%

80%	5%

40%	-15%	The sport, recreation and environmental services were heavily impacted by COVID-19 which saw all organised sport,
recreation and environmental volunteering activity put on hold during Alert Levels 3 & 4, and the postponement or cancellation of a range of regional, national and interna- tional events.
25%	-44%	The dry winter 2019 meant grass fields were used more and the use of artificials during peak times has increased. Both impacted on the use of fields during

Artificial sportsfield (%)	9%	9%	6%	20%	-70%	
utilisation – off-peak summer
Swimming pool visits (by facility)	
1,236,169	
1,256,024	
905,987	
1,321,000	
-31%	

WRAC	
554,182	
576,082	
429,061	
584,000	
-27%	
Tawa	86,040	70,806	64,894	86,600	-25%	
Freyberg	203,903	216,145	171,194	220,252	-22%	
Keith Spry	201,835	175,122	107,629	189,500	-43%	
Karori	128,036	164,487	94,324	183,074	-48%	
Thorndon	42,526	39,237	29,481	42,074	-30%	
Khandallah	19,467	14,145	9,404	15,500	-39%	

off-peak times.
Refer explanation above

During quarter two of 2019/20 a new booking and membership system was implemented which changed the way we track performance resulting in more accurate admission data. Maintenance closures, the construction of Waitohi, a poor summer and the restrictions from COVID-19 in the last quarter have also impacted all swimming pool results.

Residents’ perception that pool admission charges are affordable	New	60%	54.6%	Baseline being established	0%	NA	This measure was previously report- ed as the average of "Yes" responses
however in 2020, we asked the level of agreement "strongly agree" to "strongly disagree" therefore previous year’s result could not be used to establish baseline.	
Ratepayer subsidy per swim	New	$13.60	$19.63	$13.60	-44%		The $19.63 reflects the lower income, meaning increased net cost base, and the lower usage volume due to COVID-19 closures and restrictions.	
Ratepayer subsidy per court/hour (ASB Sports Centre)	New	$6.25	$6.40	$ 6.25	-2%			

Affordability

City recreation promotion

Number of international and national events at Council recreation facilities

New

19

19

-42%

Estimated attendees of international and national events

New	60,654

60,654

-76%

This measure was significantly impacted by all organised sport, recreation and environmental volunteering activity being put on hold during COVID-19 alert Levels 3 & 4, and the postponement or cancel- lation of a range of regional, national and international events.
Lower number of events including a couple which have large numbers –

 	Group Swimming championships.	

at Council recreation facilities	Weetbix Tryathlon and National Age

14,772

11

Marinas occupancy (%)	98%	98%	96%	1%

Recreation centre visits (including ASB Sports Centre)

1,206,688  1,288,196

1,165,000	-23%	The sport, recreation and environmental
sectors were significantly impacted by COVID-19 which saw all organised sport, recreation and environmental volunteering activity put on hold during Alert Levels 3 & 4, and the postpone- ment or cancellation of a range of re- gional, national and international events.

Karori Rec Centre	97,857	100,414

105,000	-41%	Lower than normal due to closure in Nov/Dec for refurbishment and COVID-19.

Kaupapa Pāpori me ngā Mahi a Rēhia – Social and recreation continued

Performance measure	2017/18
Actual	2018/19
Actual	2019/20
Actual	2019/20	%
Target	Variance	Variance Comments	

Basin Reserve Trust

Basin Reserve – Total event	87	97	139

41,137

73

72

$ 190,637

$15.02

$680	121	15%	Performance target was exceeded for	
days (excluding practice days)				the first nine months of the year, there has been a significant increase in	
				functions due to growing reputation	
				of the Basin function centre.	
Basin Reserve – Attendance	37,362	134,858 at all events		41,000	0%		
Basin Reserve – Practice facility	95	122		100	-27%	The measure was on track up to Q3	
usage days				then all activity suspended in Q4.	
Basin Reserve – Number of	20	53		25	188%	Performance target was exceeded for	
function days				the first nine months of the year and was largely on track for Q4 even	
				with COVID-19 restrictions.	
Basin Reserve – Event income	$290,250     $ 258,282		$290,200	-34%	Was on track up to Q3 then all activity suspended in Q4.	
BRT – Operational grant per	$10.68	$3.09 attendance		$16.50	9%		
BRT – Council operating grant	$649	$667 ($000)		$659	-3%		
5.2 Community Support	

Libraries experience

Kaupapa Pāpori me ngā Mahi a Rēhia – Social and recreation continued

Performance measure	2017/18
Actual	2018/19
Actual	2019/20
Actual	2019/20	%
Target	Variance	Variance Comments	

Libraries amenity

Customers (%) who think the	New	72%	61.1%

49.6%

16.6%

69.5%	70%	-13%	Results should not be compared to	
library helped them to gain new						previous years as the library survey	
knowledge and skills						was conducted under extraordinary circumstances, being after the closure	
						of the Central Library and during	
						COVID-19 lockdown restrictions.	
Customers (%) who think the library helped them to connect	New	53%		50%	-1%		
with others and ideas							
Customers (%) who think the	New	26%		25%	-34	Results should not be compared to	
library helped them to improve						previous years as the library survey	
their job and earning potential						was conducted under extraordinary circumstances, being after the closure	
						of the Central Library and during	
						COVID-19 lockdown restrictions.	
Customers (%) who think the library contributed to their sense	New	67%		65%	7%		
of belonging in the community							

Libraries affordability

Cost to the ratepayer per library transaction	New	$2.39	$3.53	$2.39	-48%	The delay in the opening of Te Pataka and Ta Awe libraries until Q1 2020/21 due to COVID-19 meant all setup costs were incurred without the subsequent customer transactions. This inflates the reported cost per transaction. (This KPI is a calculation of total cost divided by number of total transactions)	

Community centres utilisation

 	
Occupancy (%) of Council community centres and halls	42%	42%	34%	45%	-25%	Community Centres showed declines in attendance from COVID-19 in February when groups cancelled. Some groups still not returning until September 2020.	

Libraries utilisation

Community advocacy

User satisfaction (%) with	New	90%	89.7%

81.5%

78.3%

72.1%	90%

80%

75%

80%	0%

2%

4%	
-9.9%	
library services						
User satisfaction (%) with	New	80%				
library facilities						
User satisfaction (%) with library	New	86%				
collection (physical eg Books,						
DVDs, newspapers)						
User satisfaction (%) with library	86%	69%				
collection (e-library eg eBooks,						
eAudiobooks, eMagazines)						

Library items issued (physical)	2,815,744	2,244,761	1,699,152	Baseline being	NA	NA	Physical libraries closed due to COVID-19 at Alert Levels 3 & 4; entrance	
				established			restrictions in place at Alert Level 2;	
							many vulnerable customers took longer	
							to feel comfortable about returning.	
							Due to closure of central library in	
							2019 there are too many variables so	
							baseline target is still being established.	
Library items issued (e-library)	New	475,745	639,203	340,000	88%	
	There was an upsurge in borrowing from the eLibrary when phys-	
							ical libraries were closed.	
Estimates of attendees of library programmes	New	71,717	46,146	75,000	-38%		Prior to COVID-19 the attendance at library programmes was tracking at 19% below target. Events only returned at	
							Alert	
							Level 1 due to social distancing	
							requirements. Regular events were	
							sparsely attended in early March also.	
Library physical visits	2,440,718	2,021,003	1,408,860	2,400,000	-41%	
	Library closures due to earthquake advice or government COVID-19	
							decision impacted on physical visits	
Library website visits	3,887,484	4,840,980	3,935,427	3,300,000	19%	
	Increased emphasis and opportunity for customers to use digital services	
							since central library closed in 2019.	
Residents (%) who are active library users		52%	60.5%	50%	21%	
	In 2019 the measure was changed to only ask of those who had used a library (73%), how many said they had used a	
							library at least once in the last month	
							52%. In 2020 the results are further	
							skewed by the impact of COVID-19	
							restrictions.	

Homelessness % of known street homeless people supported by agencies

Not able
to be reported at this time

Baseline being established

NA	We are not able to report a % result so baseline is still being established. For performance details see following comment.

%
not available

Monthly reporting stopped during COVID-19 Alert Level 4. More than 120 individuals who were rough sleeping (on the street or in cars) were housed during that time. Ngāti Kahungunu Ki Pōneke (NKKP) obtained additional transitional housing and has housed and continues to support families as part of the Housing First initiative. DCM (formerly known as Inner City Ministry and then Downtown Community Ministry) supported more than 60 people into emergency accommodation through Level 3 & 4 and worked in partnership with the Wellington City Mission (WCM) to set up two new transitional hous- ing programmes. With Central Government support a transitional 38-unit facility (Te Pāapori) was set up to house street homeless. Developed

and managed by the WCM, this is staffed 24/7 and support is provided though the DHB and other support. A similar facility was developed at the site of the former Wellington Night Shelter on Taranaki Street.
Funding success
 	
Grants outcomes (%) achieved (through funded outcomes – four out of five – being met) – Social and Recreation Fund	NA	89.7%	90%	80%	13%	This performance measure reflects on how successful the projects are, based on reporting against outcomes, which form part of funding agreements. These are moderated by Officers as subject matter experts – rating 18 out of 20 outcomes achieved 80% (4 out of 5) or higher. (20 signed off, 25 total received)	

Housing quality and usage
Tenant satisfaction (%)	94%	94%	91%

93%

78%

98%

99%	90%

90%

75%

90%

98%	1%	
3%	

4%	
9%	
1%		
with services and facilities						
(includes neutral)						
Tenant rating (%) of the	93%	95%				
overall condition of their						
house/apartment (average,						
good, and very good)						
Tenant (%) sense of safety	75%	84%				
in their complex at night						
(includes neutral)						
Occupancy rate of available	96%	96%				
housing facilities						
All tenants (existing and new)	98%	99%				
housed within policy						

Kaupapa Pāpori me ngā Mahi a Rēhia – Social and recreation continued

Performance measure	2017/18
Actual	2018/19
Actual	2019/20
Actual	2019/20	%
Target	Variance	Variance Comments	
Housing upgrade project

Agreed milestones, design	Achieved	Achieved standards and budgets are met
in accordance with the agreed works programme and Deed of Grant between the Crown and the Council	Achieved	To achieve	0%		
5.3 Public health and safety	

Compliance

Food registrations – premises (%) inspected within Food Act regulation required timeframes (new business and existing businesses)	New	50%	20%	100%	-80%	COVID-19 had a significant impact on Q4. No verifications were completed during Alert Levels 2–4 resulting in a backlog
of some 350 verifications. Verifications resumed during June.	

Efficiency

Alcohol licences – high to very high-risk premises (%) inspected during peak time	88%	100%	71%	50%	42%	COVID-19 meant that inspectors were unable to carry out inspections during Alert Levels 2-4, however inspections were already well ahead of target.	
Alcohol licences – very high-risk premises (%) inspected twice during the year	New	100%	50%	100%	-50%	We had two very high-risk premises during 2019/2020. Both were only inspected once during the year because inspections were suspended during quarter 4 due to COVID-19 lockdown.	
Timeliness

Graffiti removal – response	85%	91%	84%

92%

99%

93%

94%	80%

100%

99%

100%

95%	5%	
-8%	
0%	
-7%	
-1%		
time frames (%) met						
Dog control – urgent requests	93%	95%				
(%) responded to within 1 hour						
Dog control – non-urgent	96%	97%				
requests (%) responded to						
within 24 hours						
Public toilets – urgent requests	98%	94%				
(%) responded to within 4 hours						
Public toilets – non-urgent	98%	90%				
requests (%) responded to						
within 3 days						
Hygiene standard

Tāone tupu ora – Urban development

Performance measure	2017/18	2018/19 Actual		Actual	2019/20
Actual	2019/20		%	Variance Comments Target	Variance	
6.1 Urban planning, heritage and public spaces development	

High-quality development

Residents (%) who agree that	New	61%	52.5%

86.2%

81%

80.8%

48.7%

Analysis incomplete
and not able to be reported at this time	61%	-14%		The percentage of respondents that	
new buildings constructed in the							disagreed remained the same as last	
city maintain or enhance the city’s							year however the drop was a result of	
attractiveness							more residents changing from positive responses to neutral response.	
Residents (%) who agree that regeneration of areas of	New	89%		89%	-3%	
		
the city adds to its vibrancy								
(e.g. laneways)								
Residents (%) who agree that	New	71.40%		71%	14%		There was a notable increase from last	
the public areas of their suburban							year across the suburban public area	
centre – encourage use							measures with the largest increase for Onslow-Western ward residents however	
							Southern ware residents were slightly	
							less positive.	
Residents (%) who agree that	New	73.90%		73%	11%		Even though there has been an overall	
the public areas of their suburban							increase from last year, three wards	
centre – feel safe							saw large increases while residents of two wards (Lambton and Southern)	
							expressed marginally lower feelings	
							of safety.	
Residents (%) who agree that	New	43.20%		43%	13%		The main driver for the increase came	
the public areas of their suburban							from more positive responses from	
centre – are well designed							Northern ward residents possibly related to the completion of Waitohi,	
							Johnsonville’s community hub.	
Economic impact of urban	New	No urban		Baseline	NA	NA	When regeneration projects are	
regeneration projects (specific		regeneration		being			proposed, economic factors are assessed	
methodology to be scoped)		projects		established			for consideration of the business case.	
		delivered					Post completion examination of the	
		within					economic factors is conducted as part of	
		reporting					any benefit realisation analysis. Waitohi,	
		period					Johnsonville's community hub opening in December 2019 however analysis on any	
							economic uplift will not be evident for a	
							number of years because economic	
							activity has been greatly impacted by	
							COVID-19 restrictions. Therefore,	
							baseline is still being established	

Protecting heritage

Toilets (%) that meet required cleanliness and maintenance performance standards	96%	94%	95%	95%	0%		

 	
Residents (%) who agree that heritage items are adequately valued and protected in the City	70%	63%	58.2%	70%	-17%	A drop in satisfaction was not unexpected. There have been delays in progressing key resilience projects of St James Theatre and the Town Hall. The results indicate that although residents are not feeling more negative, 8% more residents responded neutral than last year.	
Number of heritage-listed buildings that are earthquake prone
Residents (%) who agree that the character of historic suburbs is adequately retained	New New	143

63%	132

59.3%	10%
reduction
70%	-2%

-15%	

Historic suburbs are an important social and cultural part of our city and need respect and protection from poor design outcomes. Urban development needs
to strike a balance between existing heritage, low/medium rise dwellings and open (e.g. park/grass) areas. Less residents feel that character is being adequately retained. The survey results show 10% less residents feel they “strongly agree” whereas “agree” and “neutral” both increased by 6%.	

Tāone tupu ora – Urban development continued	Waka – Transport

Performance measure	2017/18	2018/19 Actual		Actual	2019/20
Actual	2019/20		%	Variance Comments Target	Variance	
6.2 Building and development	

 	
Performance measure	2017/18	2018/19 Actual		Actual	2019/20
Actual	2019/20		%	Variance Comments Target	Variance	
7.1 Transport network	

Residents’ agreement that our building and development
control settings strike the right balance between allowing development and preserving the character of the city	New	48%	36%	Baseline being established	NA	NA	Baseline is being established as results are not comparable to last year, due to the sample size increase (n=90
in 2019, vs. n=533 in 2020). Howev- er, the % of residents that disagree remained flat and the numbers of 12% of “agree” moved to neutral.	

Effective planning

Timeliness

Network condition and maintenance

Roads (%) that meet smooth roads standards*
Structures (%) that have been condition rated in the past five years – walls

Structures (%) that have been condition rated in the past five years – bridges and tunnels
Structures (%) in serviceable (average) condition or better – walls
Structures (%) in serviceable (average) condition or better – bridges
Structures (%) in serviceable (average) condition or better – tunnels
Residents (%) satisfied with street lighting in the central city
Residents (%) satisfied with street lighting in suburbs

74%	73%	72%	70%	2%

48%	69%	80%	100%	-20%	Although behind target this year,
performance has significantly improved compared to 2016–2018. We were able to complete approximately twice the number of assessments and continue to prioritise this important work.
New	100%	100%	100%	0%

81%	90%	91%	97%	-6%

New	100%	100%	100%	0%

New	75%	100%	100%	0%

84%	78%	77.5%	85%	-9%

62%	59.6%	58.7%	75%	-22%	This result is consistent with previous years
(within margin of error) with residents’ comments ranging from too much to too little street lighting. Generally suburban lighting rates around 20 percentage points lower than the lighting in the central city.

Building consents (%) issued within 20 working days

91%

89%

100%

-21%

The following factors combined to contribute to a 21% noncompliance with the statutory time frames for processing building consent applications within
20 working days:
a booming and short-skilled construction sector
an increase in building consent complexity resulting in more processing by Officers.
the withdrawal of service by engineering firms due to the risk of being drawn into third party claims and their ability to gain insurance or to meet increasing insurance costs for consent work.
the loss of experienced staff, being attracted to central government, consent processing contractors and back to the construction sector offering higher salaries.
during 2019, IT issues impacted on the ability of staff to undertake work. There has been significant improvement in the performance of our IT systems since..

Code of compliance certificates (%) issued within 20 working days
Land Information Memorandums (LIMs) (%) issued within
10 working days

96%

88%

100%

-6%

100%

58%

100%

-15%

Strong results in Q1, Q3 and Q4, with Q2 being the only quarter outside the variance limits. In Q2, the LIM teams’ performance was greatly impacted by several IT outages during the months of November and December.

Resource consents (non-notified) (%) issued within statutory time frames
Resource consents (%) that are monitored within 3 months of project commencement
Subdivision certificates –
Section 223 certificates (%) issued within statutory timeframes
Noise control (excessive noise)

99.2%

95.5%

100%

-7%

94.5%

96.25%

100%

-3%

100%

98.5%

100%

-4%

complaints (%) investigated

95%	95.98%

90%

9%

within 1 hour	

92.53%

97.25%

96%

98%

94%

85%

79%

Requests for service (%) response rate – urgent within 2 hours*
Requests for service (%) response rate – non-urgent within 15 days*
Footpaths (%) in average condition or better (measured against WCC condition standards)*"

89%	95.8%	95.9%	98%	-2%

94%	96%	98.6%	98%	1%

98%	99%	97%	96%	1%

Sealed local road network (%) that is resurfaced*

7%	7.0%	5.6%	target
range 8.9–9.9%

-100%	Increases in resurfacing and mem- brane seal waterproofing treatments have reduced available budgets.

Residents (%) satisfaction with the condition of local roads
in their neighbourhood

Active modes promotion

73%	72%	69.2%	75%	-8%

Number of pedestrians en- tering and leaving the CBD	14,924	14,569	11,550	14,569

2,667	-21%

-5%	Very heavy rain 7–9am on one of the survey days, so results are not comparable.	
(weekdays 7–9am)							
Number of cyclists entering and leaving the CBD	2,264	2,667	2,521				
(weekdays 7–9am)							

Residents (%) who are sat- isfied with walking on the transport network	93%	87%	77.5%	75%	3%		
Residents (%) who are sat- isfied with cycling on the transport network	31%	33%	34.1%	75%	-55%	A significant number of respondents were disappointed that Council were unable
to continue to consider the temporary cycleways as a COVID-19 response once we reached pandemic Alert Level 1.	

Network safety

Customers (%) who rate building control service as good or very good	74%	65.4%	63.8%	70%	-9%		
Customers (%) who rate resource consent service as good or very good	New	91%	93%	91%	2%		

Customer focus	
Compliance
Building Consent Authority (BCA) accreditation retention	NA	Retained	Retained	Retained	0%	Accreditation occurs every two years. Accreditation was confirmed in the building consent authority accredi- tation amended assessment report, dated 30 September 2019 which stated IANZ conditions cleared.	

* Denotes mandatory measure

Waka –Transport continued

Performance measure	2017/18
Actual	2018/19
Actual	2019/20
Actual	2019/20	%
Target	Variance	Variance Comments	

Network efficiency and congestion	

Residents (%) who think peak travel times are acceptable

38%	35%

50%	-26%	Comments reflect delays on the City to airport corridor, Basin Reserve and Mt Victoria tunnel.

Supplementary
tables

Peak travel times between CBD and suburbs (Karori)
Peak travel times between CBD and suburbs (Johnsonville)
Peak travel times between CBD and suburbs (Island Bay)
Peak travel times between CBD and suburbs (Miramar)

In the last twelve months, how often on average have you used...?	Most days	Once or twice a week	Once every 2–3
weeks	Once a month	Once every 2–3
months	Once every 4–5
months	Once every 6 months or less often	Never in the last 12 months	Reported Measure	
Wellington City’s coastal areas or beaches	
2015 n=683	7%	15%	17%	17%	17%	9%	14%	4%	56%	
2016 n=672	6%	15%	19%	16%	17%	9%	14%	5%	56%	
2017 n=671	5%	16%	18%	16%	19%	9%	13%	5%	55%	
2018 n=972	8%	14%	21%	17%	17%	7%	11%	5%	59%	
2019 n=461	4%	11%	21%	18%	20%	9%	15%	3%	54%	
2020 n=477	7%	17%	21%	16%	14%	8%	12%	5%	62%	
Botanic gardens, including Otari-Wilton’s Bush Native Botanic Reserve	
2015 n=683	2%	4%	7%	11%	25%	12%	27%	13%	24%	
2016 n=671	1%	3%	7%	12%	23%	16%	23%	15%	23%	
2017 n=673	2%	3%	8%	11%	18%	18%	26%	14%	24%	
2018 n=968	2%	3%	8%	11%	22%	17%	25%	13%	23%	
2019 n=462	1%	3%	7%	11%	24%	16%	26%	12%	22%	
2020 n=498	4%	5%	8%	14%	19%	16%	20%	14%	30%	
Wellington City Council parks	
2015 n=680	5%	16%	15%	17%	19%	10%	14%	4%	53%	
2016 n=670	6%	16%	17%	17%	17%	9%	14%	5%	56%	
2017 n=671	5%	15%	19%	16%	16%	9%	13%	6%	55%	
2018 n=964	6%	16%	18%	18%	17%	8%	11%	5%	58%	
2019 n=461	8%	19%	20%	16%	16%	9%	10%	2%	63%	
2020 n= 490 (78%)	12%	26%	21%	17%	11%	5%	4%	3%	75%	
Town Belt or Outer Green Belt	
2015 n=662	3%	8%	10%	10%	15%	13%	19%	22%	31%	
2016 n=655	4%	8%	9%	12%	16%	11%	19%	22%	33%	
2017 n=657	6%	10%	9%	11%	15%	13%	17%	20%	36%	
2018 n=935	4%	10%	12%	13%	14%	9%	17%	22%	38%	
2019 n=459	5%	8%	15%	16%	20%	11%	13%	12%	45%	
2020 n= 482 (77%)	7%	15%	18%	15%	12%	8%	12%	13%	55%	
The city’s walking tracks	
2015 n=677	6%	11%	11%	10%	16%	11%	17%	18%	38%	
2016 n=666	4%	11%	10%	13%	14%	12%	16%	20%	38%	
2017 n=664	6%	11%	12%	17%	11%	11%	13%	19%	46%	
2018 n=965	7%	12%	13%	15%	12%	9%	14%	18%	47%	
2019 n=453	4%	10%	18%	14%	15%	12%	14%	14%	46%	
2020 n= 476 (76%)	10%	16%	16%	15%	11%	8%	11%	12%	57%	

Peak travel times between CBD and suburbs (Karori, Johnsonville,

New	100%

New	98%

New	100%

New	96.3%

New	98%

100% <25

36.8%

98%

98%

99%

97%

98%

minutes
100% <25
minutes
100% <25
minutes
100% <25
minutes
100% <25
minutes

-2%	
-2%	
-1%	
-3%	

-2%

Environment & infrastructure outcomes – Breakdown of use of open spaces

Island Bay and Miramar)	
Public Transport enablement
Bus stops (%) that have a shelter (co-delivered with GWRC)	New	31%	37% All,
45%
inbound	Baseline being es- tablished	NA	Our objective is to increase the number of Inbound bus stops which have a shelter, however with the changes
to the bus network we are count- ing both inbound and all stops so a baseline target is being established.	

Wellington Cable Car Limited
Cable Car – Total passenger trips	1,145,278	1,170,932	862,487	1,206,633	-29%	The cable car passenger numbers were already 15% behind target at
Q3 with reduced volume of cruise ship passengers. The Cable Car was closed during AL4 and AL3, with some maintenance tasks undertaken during AL3. Services were reopened under Alert Level 2 but the hours of oper- ation were reduced, and the service
is continuing to operate on slightly reduced service times compared with the pre-COVID-19 timetable, resulting in volumes dropping 90% in Q4.	
Cable Car – Reliability (%)	99.83%	89.53%	99.9%	99%	1%		
7.2 Parking	

Equity
Residents (%) who perceive that parking enforcement is fair	53%	43%	38.2%	50%	-24%	Parking is a topic of concern for many residents. Views expressed are polarised from strong calls to remove all parking and only have bus lanes, to need to add more parking. During 2020 Council has been consulting on the future for parking in the city.	

Availability
City parking occupancy during	58%	57%	45%

42%

22.4%

28.6%	50–70%	-100%	Due to COVID-19 and mandatory isolation	
weekdays (08:00–18:00)						occupancy is lower due to people weren’t coming into the city. This continued	
						through into early June. Occupancy	
						rates were within desired range for	
						year to date as at end of March.	
City parking occupancy during	68%	57%		50–70%	-100%	Due to COVID-19 and mandatory isolation	
weekends (08:00–18:00)						occupancy is lower due to people weren’t coming into the city. This continued	
						through into early June. Occupancy	
						rates were within desired range during	
						Q1 and Q2 and dropped off in Q3 and Q4.	
Residents (%) satisfaction with	26%	26%		70%	-68%	Council has been consulting on the future	
the availability of on-street car						for on-street parking, with residents	
parking (weekdays)						expressing strong views held for both more, and less, on-street parking.	
Residents (%) satisfaction with	35%	27%		70%	-59%	As per comment above, there is a lot of	
the availability of on-street car						work to be done to address this gap in	
parking (weekend)						satisfaction, only slightly more residents are dissatisfied with weekend parking	
						availability at 49%.	

In the last twelve months, how often on average have you used...?	Most days	Once or twice a week	Once every 2–3
weeks	Once a month	Once every 2–3
months	Once every 4–5
months	Once every 6 months or less often	Never in the last 12 months	Reported Measure	
Wellington’s streams	
2014 n=456	1%	3%	5%	4%	9%	8%	18%	52%	13%	
2015 n=662	1%	4%	6%	6%	8%	8%	19%	48%	17%	
2016 n=655	1%	2%	5%	6%	11%	11%	17%	47%	14%	
2017 n=656	2%	3%	5%	6%	9%	10%	21%	45%	16%	
2018 n=932	2%	4%	5%	6%	12%	9%	18%	46%	15%	
2019 n=428	3%	2%	6%	5%	12%	13%	22%	37%	17%	
2020 n= 511 (82%)	2%	5%	8%	6%	10%	11%	15%	37%	21%	
Waterfront	
2019 n=461	12%	23%	21%	15%	15%	5%	7%	2%	71%	
2020 n= 482 (77%)	15%	21%	23%	15%	11%	7%	6%	2%	74%	
Playgrounds	
2019 n=457	1%	6%	7%	7%	10%	6%	17%	46%	21%	
2020 n= 489 (78%)	2%	8%	5%	8%	7%	5%	15%	47%	22%	

Source: Wellington City Council Residents’ Monitoring Survey 2020 (RMS)

Environment & infrastructure outcomes – Resident engagement in environmental protection and restoration – Residents who state they have taken regular action in the last year to reduce their greenhouse gas emissions

We are concerned about climate change. What steps (if any) have you undertaken on
an ongoing basis to reduce your emissions in the last 12 months? Please select all that apply Transport emissions (e.g. driving and/or flying less, use or purchased an electric vehicle) Waste emissions (e.g. reduce, re-use, re-cycle where possible)
Food emissions (e.g. buying locally, eating less meat, growing own food)
Energy emissions (e.g. use renewable energy, installed a smart-meter to monitor electricity usage at home)
Anything else (please specify)
None [calculated via SPSS grouping]	2019 n=462
50%
91%
62%
27%
10%
5%	#
232
418
288
122
47
21	2020		
			n=479	#	
			57%	356	
			84%	525	
			66%	414	
			27%	168	
			9%	58	
			8%	48	
Total who have done ‘something’ (total minus ‘none of these’)	95%	92%	
Source: Wellington City Council Residents’ Monitoring Survey 2020

Social and recreation outcomes – Access to and participation in recreation and leisure – Barriers to participation in Sports and Recreation
What, if anything, makes it difficult for you to take part in these recreational activities?
Organisation-led opportunities:
These are formally organised with participation facilitated by a club or group and usually involving membership or subscription fees with participation opportunities provided via regular competition and events. Examples include playing competitive or social sport eg hockey, belonging to a tramping club or participating in a fun run series.
Participant-led opportunities:
These are more informal and flexible allowing place and time to be determined by the participant. Maybe a pay for play component with costs to access a place or purchase equipment. Examples include swimming at a Council pool, shooting hoops at a local park, going for a walk along the waterfront.

What, if anything, makes it difficult for you	2018	2018	2019	2019	2020	2020	
to take part in these recreational activities?	Org	Part	Org	Part	Org	Part	
Lack of time due to commitments, childcare duties, other interests etc.	39%	34%	37%	32%	38%	35%	
Too busy	29%	26%	30%	28%	32%	32%	
Nothing	16%	19%	19%	25%	16%	23%	
Lack of motivation	20%	22%	22%	23%	22%	21%	
Not interested	23%	14%	37%	21%	26%	15%	
Lack of parking	11%	9%	12%	11%	14%	15%	
Don’t know where or who to contact	14%	9%	12%	9%	21%	13%	
Cost	25%	16%	19%	12%	22%	13%	
Lack of transport	11%	9%	10%	9%	11%	12%	
Injury or disability	8%	8%	10%	9%	7%	8%	
No easy access to facilities or parks nearby	7%	6%	5%	7%	7%	7%	
Don’t feel welcome	7%	3%	5%	4%	6%	5%	
Poor health	6%	6%	8%	10%	4%	4%	
Safety concerns	2%	3%	3%	3%	2%	4%	
Other (specify)	3%	3%	4%	4%	4%	3%	
Cultural/language barriers	2%	2%	1%	2%	1%	1%	
	n=988		n=508		n=664	
Source: Wellington City Council Residents’ Monitoring Survey 2020

Urban Development outcomes – High-quality urban form residents’ perceptions – city and community safety issues of most concern

Which of the following, if any, are particularly concerning in Wellington at present?
Poorly lit or dark public areas such as streets, paths and parks Vandalism such as broken windows in shops and public buildings Graffiti
Poorly maintained or dangerous public areas such as streets, paths and parks
Traffic, including busy roads and lack of pedestrian facilities Dangerous driving including speeding, drunk drivers and so on Alcohol and drug problems
Car theft or vandalism, and theft from cars
Threatening people and/or people behaving dangerously Begging
Other Nothing
Don’t know	2014

71%
28%
40%
40%
31%
35%
55%
29%
51%

10%
2%
2%	2015

61%
26%
34%
34%
34%
29%
51%
36%
48%

11%
5%
1%	2016

63%
27%
32%
37%
33%
30%
49%
32%
51%

10%
5%
2%	2017

59%
17%
16%
33%
33%
33%
46%
29%
46%

6%
3%
1%	2018

55%
17%
16%
26%
36%
33%
46%
27%
35%
56%
8%
4%
2%	2019

61%
21%
21%
31%
39%
40%
49%
29%
39%
55%
12%
3%
0%	2020	
							59%	
							25%	
							23%	
							41%	
							42%	
							41%	
							40%	
							40%	
							42%	
							42%	
							9%	
							2%	
	n=501	n=760	n=994	n=766	n=988	n=508	n=689	
Source: Wellington City Council Residents’ Monitoring Survey 2020

Urban Development outcomes – Resilience – Seismic resilience index
There are 10 indicators selected to give an overall perspective on our progress against resilience improvements. Indicators are used to monitor our city over time and provide information on trends that may influence our performance including those outside our control. In the coming years, we will continue to monitor these resilience improvement indicators. Most of the measures selected for this index are sourced from the resident’s monitoring survey, which was conducted during COVID-19 restrictions. Most changes from previous year are within the margin of error, however there are a notable change in the measures of indicators 6, 7 and 8 detailed below.

Outcome

Proportion of residents who feel they could rely on their neighbours for support following a natural disaster or other significant event
Social capital – residents’ response to “I have strong social or community networks that I can draw on in Wellington”
Residents with access to emergency items at home and workplace/place of education/other daily destination At home
At work
At place of education Motor vehicle
Other
Proportion of residents who feel safe in the event of a moderate earthquake at home, at workplace/place of education/other daily destination
At home At work
At place of education
Proportion of residents who have checked their dwelling to improve its seismic resilience in the past year
Proportion of residents who have taken action to improve their dwelling’s seismic resilience in the past year	Desired trend

	2018/19

69.6%
63.6%

83.6%
77.3%
45.6%
33.2%
10.1%

85.3%
68.5%
76.3%
26.7%
14.4%	2019/20	
			
64.6%	
			60.4%	
			
80.9%	
			76.0%	
			43.0%	
			38.2%	
			13.2%	
			
85.0%	
			72.0%	
			66.0%	
			13.3%	
			6.5%	

37.3%

Significant drop. Both “checked” and “taken action” dropped with some residents commenting that they checked their home 1-2 years ago but not recently. 34% of our survey participants are identified as renters, with some comments that the responsibility to check for seismic resilience sits with their landlords.

Residents who recall receiving Wellington-specific resilience information in the past year
(eg earthquake preparedness via digital, media or community channels)	22.2%

31.8%

Significant increase. Although this measure has increased, residents still comment that they do not know how to access info on what to do.

Residents (%) who believe that Wellington City Council is making adequate progress
on addressing building resilience-related issues in the city	42.1%

Down 30
Of the 563 buildings listed as earthquake
prone, 135 are identified as priority.

Significant drop. Although there are only two data points this is a significant drop since last year, with resident’s comments centered around the time it is taking to resolve outstanding resilience concern for Civic Square and the central library.
Number of earthquake-prone buildings – Change	Down 124
Number of earthquake-prone buildings and lifeline routes		Of the 593 buildings listed as earthquake prone, 54 are iden- tified as priority.

Source: Wellington City Council Residents’ Monitoring Survey 2019 & 2020

Transport outcome - Environmental impact and safety - Air quality monitoring
The table below summarises levels of air pollution measured at the Wellington central monitoring station by calendar year. Key indicator pollutants measured are: nitrogen dioxide (NO2), carbon monoxide (CO) and particulate matter measured as PM10 and PM2.5. All pollutants met national standards and guidelines.

Measure		2015	2016	2017	2018	2019	
NO2 (µg/m3) NES-AQ limit <200		Max 1-hr	66	61.5	67.9	63.8	67	
	Annual mean	N/A	14	14.1	12.6	11.7	
CO (mg/m3) NAAQG limit <30		Max 1-hr	1	1.78	1.49	1.21	1.6	
	Annual mean	N/A	0.22	0.19	0.15	0.17	
Particulate matter (PM10) (µg/m3) NES-AQ limit <50		Max 24-hr		13	17	13	17	
	Annual mean	N/A	5.5	5.4	5.5	5.9	
Particulate matter (PM2.5) (µg/m3) WHO limit <25		Max 24-hr	32	26	25	25	39	
	Annual mean	N/A	11.3	11.3	12.6	15.8	
Source: Greater Wellington Regional Council, Air quality monitoring programme: Annual data report 2019 (2020 report not available at time of publication)

Transport outcome - Environmental impact and safety - Residents’ perceptions of transport-related safety issues

Which of the following, if any, are particularly concerning in Wellington at present?	2014	2015	2016	2017	2018	2019	2020	
Poorly maintained or dangerous public areas such as streets, paths and parks	40%	34%	37%	33%	26%	31%	41%	
Traffic, including busy roads and lack of pedestrian facilities	31%	34%	33%	33%	36%	39%	42%	
Dangerous driving including speeding, drunk drivers and so on	35%	29%	30%	33%	33%	40%	41%	
Car theft or vandalism, and theft from cars	29%	36%	32%	29%	27%	29%	40%	
	n=501	n=760	n=994	n=766	n=988	n=508	n=689	
Source: Wellington City Council Residents’ Monitoring Survey 2020

 	 	 	 	

Our

Section three

leadership

 	
our people

 	 	 	 	 	 	 	

I tēnei wāhanga
E whakaahua ana tēnei wāhanga i ngā whakaritenga whakahaere manapori, rangatōpū hoki a te Kaunihera me te whakaatu i ngā mōhiohio e pā ana ki ā mātou mema pōti, komiti, rōpū tohutohu, te hanganga o te rōpū whakahaere me ngā kaimahi.

In this section
This section describes the Council's democratic and corporate governance arrangements
and presents information relating to our elected members, committees, directorates, organisational structure and staff.

158	159

Tō Mātou Kaunihera
Our Council

The essence of the role elected councillors have is to set the direction and priorities for the city and provide oversight
of the organisation.
Wellington City Council is made up of 14 Councillors and a Mayor. Along with all other local authorities in New Zealand, the Council is elected every three years. The Mayor is elected “at large”, meaning by all the city’s residents. The Councillors are elected by voters from their respective geographical areas (wards). The next election is on 8 October 2022 and will be held under the single transferable vote system (STV).
Setting the direction
Elected councillors have the responsibility to set the direction and priorities for the city, and
provide oversight of the organisation. The Council then appoints the chief executive to deliver
the services needed to fulfil its direction.
Under the Local Government Act 2002, certain powers are reserved for the elected Council. They include setting bylaws and rates, setting the city’s budget through
Long-term and Annual Plans, making decisions about borrowing money and buying or selling assets, setting up and giving powers to Council committees, determining how Council meetings will be run, setting a Councillor code of conduct, and adopting Annual Reports.
Subject to these powers, day-to-day management of Council services and operations is delegated to the chief executive, with Councillors monitoring progress.

Community advocates
Councillors are responsible for looking after those from the geographical area (ward) which elected them. This involves meeting people and organisations and advocating on their behalf
or addressing any issues they may face.
However, when Councillors come together to make decisions in the Council or a Council
committee or subcommittee, they are required to put aside local interests and exercise their powers in the best interests of the city.
Making the hard decisions
Whatever decisions the Councillors make, some people will like it better than others – that’s the nature of democracy. In addition, Council decisions are made in a climate where public organisations are scrutinised more than ever before, and trust
in public organisations is generally declining.
Before Councillors make any decision, they – with advice from Council staff – examine it from every angle. They will think about the wellbeing and collective needs
and aspirations of Wellington’s people as well as legal requirements and contractual obligations, how it fits with the Council’s strategic direction and policies, and whether it’s a sensible use of ratepayer funding.
Councillors will often ask for information to be presented to them such as: How much will it cost? How can it be funded? Will someone else do the work if we don’t? Will the benefits be significantly less or the costs significantly greater if we wait? And are there any risks involved?
We also engage with our community on most decisions we are making, ensuring people can have their say and contribute and influence how their city is shaped.
Altogether, we strive to ensure our decision- making processes are fair and robust.

Standing committees and subcommittees
The Council conducts its business at open and publicly advertised meetings.
The Mayor (as required by section 41A of the Local Government Act 2002) put in place the current structure of committees and subcommittees following the 2019 election. The Council
retains the power to revisit the structure.
The Council’s committee structure ensures that all decisions take account of the wider issues facing the city. All services are linked, so it makes good sense to consider them all together. For example, urban
development decisions affect the transport network and the environment. Our decision-making structure – with the Strategy and Policy Committee playing a lead role – ensures that all Councillors are aware of the full range of issues facing the city. The beginning of each meeting is set aside for members of the public to have their say.
The structure adopted for the 2019-2022 triennium is based on two committees of the whole – Strategy and Policy and Annual Plan/Long- term Plan. The membership of these committees comprises of the Mayor and all Councillors.
There are also several other committees and subcommittees as follows: CEO Performance Review Committee; Regulatory Processes Committee; Council-controlled Organisations Subcommittee; Finance, Audit and Risk Subcommittee; Grants Subcommittee, and the Safer Speeds Hearings
Subcommittee. Council also has representatives on six joint committees with other Councils in the region.
The Mayor is an ex-officio member of all Wellington City Council committees.

The Council’s committee structure ensures that all decisions take account of the wider issues facing the city

Te Koromatua me ō Kaikaunihera
Your Mayor and Councillors

All Councillors are members of the Strategy and Policy Committee and the Annual Plan/Long-term Plan Committee. Each Councillor has one or more portfolios and is a member of committees or subcommittees related to those portfolio areas.
Councillors are able to attend and speak at any Council committee, but can only vote if they are a member of the committee.

Councillors also have responsibilities in the wider Wellington region.
They sit as Council-appointed representatives on various trusts and organisations that Council has an interest in, on Council-
Controlled Organisation boards and on committees that have members from the region’s other territorial local authorities.

See wellington.govt.nz/your- council/about-the-council/mayor- and-councillors for information about the committees and external appointments for each elected member.
See Note 37 in the Financial section for details of Councillor and Community Board member remuneration on pages 293.

Takapū Northern Ward
Jenny Condie Councillor
Elected: 2019
Portfolio Leader: Associate Transport (Parking, Roading, Safety, Traffic Resolutions)
Contact: jenny.condie@wcc.govt.nz

Takapū Northern Ward
Jill Day Councillor
Elected: 2016
Portfolio Leader: Māori Partnerships, Associate Community Well-being (Children, Play spaces and programmes)
Contact: jill.day@wcc.govt.nz

Paekawakawa Southern Ward
Fleur Fitzsimons Councillor
Elected: 2017 by-election
Portfolio Leader: Community Well-being (social housing and housing partnerships, libraries, public health)
Contact:
fleur.fitzsimons@wcc.govt.nz

 	 	 	 	 	

Citywide
Andy Foster Mayor
Elected: 1992 to Wharangi Onslow-Western Ward and Mayor in October 2019
Portfolio Leader: Spatial Plan and District Plan, Let’s Get Wellington Moving, New
funding tools (including central government funding)
Contact:
mayor@wcc.govt.nz

Motukairangi Eastern Ward
Sarah Free Deputy Mayor
Elected: 2013 and appointed Deputy Mayor in October 2019
Portfolio Leader: Governance,
Associate Transport (Walking, Cycling, and Public Transport Infrastructure)
Contact:
sarah.free@wcc.govt.nz

Wharangi Onslow-Western Ward
Diane Calvert Councillor
Elected: 2016
Portfolio Leader:
Economic Development
Contact:
diane.calvert@wcc.govt.nz

Paekawakawa Southern Ward
Laurie Foon Councillor
Elected: 2019
Portfolio Leader:
Waste Minimisation,
Associate Economic Development (sustainable small business)
Contact: laurie.foon@wcc.govt.nz

Wharangi Onslow-Western Ward
Rebecca Matthews Councillor
Elected: 2019
Portfolio Leader: Community Engagement (consultation, information, and engagement), Associate Community Well-being (living wage, disability, community services and centres)
Contact:
rebecca.matthews@wcc.govt.nz

Motukairangi Eastern Ward
Teri O’Neill Councillor
Elected: 2019
Portfolio Leader: Natural Environment, Associate Community Well-being (Homelessness)
Contact:
teri.oneill@wcc.govt.nz

Councillor meeting attendance

Conflict of interest and Code of Conduct

Pukehīnau Lambton Ward
Iona Pannett Councillor
Elected: 2007
Portfolio Leader: Associate Urban

Pukehīnau Lambton Ward
Tamatha Paul Councillor
Elected: 2019
Portfolio Leader: Climate Change,

Motukairangi Eastern Ward
Sean Rush Councillor
Elected: 2019
Portfolio Leader: Infrastructure

The meeting attendance figures relate to Council, committee (excluding pre-meeting briefing sessions) and subcommittee meetings of which the Councillor is a member.
The meeting attendance figures provided do not include Councillors’ attendance at external
meetings, including for boards of Council-controlled organisations, community boards, working parties, advisory groups and other external bodies. Such meetings can conflict with Council meeting times.
Excluded: Committees administered by other Councils: Porirua Harbour and Catchment (joint committee), Wastewater Treatment Plant and Landfill (joint committee). For more information, see Council and Committee meetings – Porirua City.
Meetings
held of which

A copy of the Elected Members Code of Conduct was provided as part of the induction process at the beginning of the triennium and covered the following: roles, responsibilities, relationships, behaviours, compliance and review. The Code of Conduct provides guidance on the standards of behaviour that are expected from the Mayor and Elected Members. Both these topics were covered extensively as part of the induction programme.
Conflict of interest
At the start of the triennium, all Councillors were asked to declare their interests and follow-ups occur to ensure that Councillors comply with the provisions of the Local Authorities (Members’ Interest) Act 1968, which covers financial interest, and with other requirements relating to non-pecuniary conflicts

Development (District Plan shared with Mayor Foster, Te Ngākau

Associate Community Wellbeing (City Safety and Youth)

(three waters), Associate Urban Development (place-making

Current Council

the Councillor is a member

Meetings attended

of interest. At Committee meetings, members are asked to declare any interest in relation to any

Civic Square, CBD apartments resilience, insurance, weathertight

Contact:
tamatha.paul@wcc.govt.nz

and community-led planning shared with Councillor Pannett,

Mayor Andy Foster	56*	49	88%*
Deputy Mayor Sarah Free   44	44	100%

items/reports on the agenda whether pecuniary or
non-pecuniary. If a Councillor declares an interest,

buildings, building resilient heritage,

urban development agency,

 		he/she will not vote or speak to the item.

consenting – one stop shop, place- making and community-led planning shared with Councillor Rush)
Contact:

iona.pannett@wcc.govt.nz

property, low carbon energy)

sean.rush@wcc.govt.nz	Jill Day	44	43	98%	
	Fleur Fitzsimons	44	44	100%	
	Laurie Foon	38	38	100%	
	Rebecca Matthews	39	39	100%	
	Teri O’Neill	34	32	94%	
	Iona Pannett	46	46	100%	
	Tamatha Paul	35	34	97%	
	Sean Rush	33	32	97%	
	Malcolm Sparrow	45	45	100%	
	Simon Woolf	40	40	100%	
	Nicola Young
Former councillors	43	43	100%	

Contact:

Diane Calvert	47	46	98%	
Jenny Condie	38	38	100%

Code of Conduct
The Code of Conduct applies to Elected Members in their dealings with each other, the Chief Executive, all staff, the media, and the general public.
Any alleged breach by a member of the provisions of the code for which there is not a process and penalty provided elsewhere shall be reported in
a timely manner to the appropriate person. Any allegation is considered in a manner that is fair to all parties involved, including ensuring that due process is respected. This will include ensuring that the Elected Member is given an opportunity to consider and respond to the allegation.

Takapū Northern Ward
Malcolm Sparrow	Wharangi Onslow-Western Wa
Simon Woolf	rd	Pukehīnau Lambton Ward
Nicola Young	Mayor Justin Lester
Chris Calvi-Freeman	16
10	16
10	100%
100%	
Councillor	Councillor	Councillor	Brian Dawson	9	9	100%	

Elected: 2013
Portfolio Leader: Associate Resilience (community resilience and emergency preparedness)
Contact:
malcolm.sparrow@wcc.govt.nz

Elected: 2013
Portfolio Leader:
Sport and Recreation
Contact:
simon.woolf@wcc.govt.nz

Elected: 2013
Portfolio Leader: Arts, Culture and Events, Associate Urban
Development (central city projects), Associate Economic Development (civic and global partnerships)
Contact:
nicola.young@wcc.govt.nz

Total meetings held	62

Peter Gilberd	10	10	100%	
David Lee	10	10	100%	
Simon Marsh	8	8	100%	

* The Mayor is an ex-officio member of all Wellington City Council committees and sub-committees. Therefore the meeting attendance percentage is not comparable with other elected members.

Community Boards	Advisory Groups

Wellington City Council has two community boards – Tawa Community Board and Makara/Ōhāriu Community Board. These boards are constituted under section 49 of the Local Government Act 2002 to:
• represent and act as an advocate for the interests of their community
• consider and report on any matter referred to it by the Council and any issues of interest or concern to the community board
• make an annual submission to the Council on expenditure in the community
• maintain an overview of services provided by the Council within the community
• communicate with community organisations and special interest groups
• undertake any responsibilities delegated by the Council.
Both community boards have six members elected triennially by the electors in the respective communities.
Tawa Community Board
Chair: Robyn Parkinson. Deputy Chair: Richard Herbert. Members: Graeme Hansen, Anna Scott, Stephanie Knight and Jackson Lacy. Council Appointed Members: Cr Malcolm Sparrow and Deputy Mayor Jill Day.
The Tawa Community Board met eight times in 2019/20. The Board discussed The Board discussed a wide range of matters affecting the community, including among other things: waste, resilience, supporting the Linden Social Centre local programme and events, Planning
for Growth, and community support during COVID-19.
Tawa Community Grants: 15 grants were made totalling $15,000.
Makara/Ōhāriu Community Board
Chair: John Apanowicz. Deputy Chair: Christine Grace. Members: Hamish Todd, Chris Renner, Wayne Rudd, and Darren Hoskins.
The Makara/Ohariu Community Board met six times in 2019/20. The Board discussed a wide range of matters affecting the community, including: Makara Beach project (community-led climate adaption), climate change issues, roading/traffic updates and emergency management.

Forums and advisory groups help specific sectors of the community to have their say and guide us in our work.
Our advisory groups consist of members of the community with specialist knowledge in a specific area of Council responsibility. Their role is to help their communities to understand Council processes and participate in the Council’s decision-making processes, and to help the Council understand the needs of their communities and how those needs may be addressed. They are not seen as representing all views on their specialist areas or communities in Wellington.
Our five advisory groups are: the Pacific Advisory Group, Accessibility Advisory Group, Safe and Sustainability Transport Forum, Environmental Reference Group,
and the Youth Council.
Accessibility Advisory Group (AAG) Co-chairs: Tristram Ingham and Rachel Noble. Members: Amy Evanson, Erikka Helliwell,
Rosie MacLeod, Stuart Mills, Solmaz Nazari Orakani, Alan Royal and Nick Ruane.
AAG met nine times in the 2019/20 year and provided feedback and advice to Council on a range of matters including: Parking Policy, Let’s Get Wellington Moving, Advisory Group review, Karori Public Space Improvement Project, Accessibility Action Plan, Wellington Design Manual, Footpath Management Policy, and Suburban Pedestrian Ramp Audits.
Environmental Reference Group (ERG) Chair: Martin Payne. Members: Steven Almond, Mike Britton, Lynn Cadenhead, Arron Cox, Isla Day, Sally
Faisandier, George Hobson, Chris Paulin, Clare Stringer, Michelle Rush, Chris Watson and Eleanor West.
ERG met 10 times in the 2019/20 year and provided feedback and advice to Council on several matters including Let’s Get Wellington Moving, the Parking Policy review, the Southern Landfill, Backyard Tāonga, the Advisory Group Review,
Te Atakura – First to Zero low carbon capital plan, the Cemeteries Management Plan Review, Planning for Growth, and the Annual Plan 2020/2021.

Pacific Advisory Group (PAG)
Chair: Jocelyn Kua. Deputy Chair: Anthony Carter. Members: Mino Cleverley, Natalia Fareti, Aseri Kua, Sunia Foliaki, Kira (Christine) Hundleby, Ofania Ikiua, Sai Lealea, Merio Marsters, Alvin Mitikulena, and Llisapeti (Lisa) Pouvalu.
PAG has specific membership requirements to ensure it represents a broad range of the Pasifika communities in Wellington. It includes up to 17 members. Three members will be from Samoan communities. Two
members will be from each of the following communities: Cook Islands, Tonga, Fiji, Niue, Tokelau and Tuvalu.
One member will be from a Melanesian community and one member will be from a Micronesian community.
PAG met 10 times in the 2019/20 year and provided feedback and advice to Council on several matters including Let’s Get Wellington Moving, Planning for Growth, Parking Policy, Annual Plan 2020/21, and Fairer Rents for Council Tenants.
Youth Council
Chair: Freja Cook until February 2020, then Ella Flavell. Deputy Chair: Ella Flavell until February 2020, then Laura Jackson. Current Members: Carl Bennett, Watene Campbell, Raihaan Dalwai, Grace Day, Neesha Dixon, Ella Flavell, Tony Huang, Laura Jackson, Shelly Liang, Bethany Kaye-Blake, Jackson Lacy, Brad Olsen, Anastasia Reid, Timothy Rutherford, and John Sibanda. Former members: Sarah Gardener (until August 2019), Ollie Michie (until August 2019), Laura Somerset (until August 2019), Teri O’Neill (until October 2019), Melania Lui-Fai (until November 2019), Freja Cook (until February 2020), Dexter Smith (until February 2020), and Liam Davies (until March 2020).
Youth Council met 16 times in the 2019/20 year and provided feedback and advice to Council on several matters including the Annual Plan 2020/21, Planning for Growth, Let’s Get Wellington Moving, Central City Safer Speeds, Southern Landfill Expansion, Advisory Groups Review, and e-scooter trial.
Members also assisted Council through engaging with young people on the 2019 Local Authority Elections, Planning for Growth, and the 2020/21 Annual Plan.
Youth Council also provided feedback and advice to Parliament and government departments on the Zero Carbon Bill, New Zealand’s 2020-2049
Biodiversity Strategy, and youth engagement in the upcoming 2020 central government election.

Safe and Sustainable Transport Forum (SASTF) Members: Representatives from 10 organisations and agencies interested in road safety and/or sustainable transport are invited to participate in the quarterly SASTF meetings including: Greater Wellington Regional Council, Living Streets Wellington, Cycle Aware Wellington, Waka Kotahi New Zealand Transport Agency, New Zealand Police, Automobile Association, Accident Compensation Corporation, Regional Public Health, Bikers’ Rights Organisation of New Zealand (BRONZ) and Wellington City Councillors.
This forum did not meet during the 2019/20 year.

Tō mātou rōpū whakahaere
Our organisation

The Mayor and Councillors employ and delegate the management and delivery of Council services
to the Chief Executive.
The Chief Executive manages Wellington City Council under approved Annual and Long-term Plans, legislation, policies and guidelines. The Chief Executive is responsible for the efficient and effective implementation of the Council’s decisions within agreed parameters. The Chief Executive employs the Council’s 1817 staff to help with these responsibilities.
The Chief Executive also provides independent and impartial advice to the elected council before decisions are made. Advice is tested among council staff and reviewed by the Executive Leadership Team to ensure all realistic options have
been considered and risks have been identified and assessed before the advice is presented to the Council for consideration and decision making.
The Chief Executive ensures the Council has effective systems to monitor financial and service level performance and recommend changes where appropriate.
The Chief Executive’s performance is regularly monitored by the Council’s Performance Review Committee.

Executive team and structure Kevin Lavery, who was Wellington City Council’s Chief Executive for seven years, departed in March 2020. The role was awarded to Chief Operating Officer Barbara McKerrow through the Performance Review Committee recruitment process.
The Executive Leadership Team (ELT) supports the Chief Executive in leading our staff. There have been several changes to the team in the 2019/20 year. The team is made
up of eight members, up from five in the 2018/19 financial year. The three changes are the introduction of a Chief Digital Officer and Head of Māori Strategic Partnerships, and
the splitting of the Chief City Planner role into Chief Planning Officer and Chief Infrastructure Officer roles.
These areas will be ones of focus for the Council in the coming years.
See Table 90 in the financial statements on pg 296 for details of the Chief Executive’s remuneration package.

Barbara McKerrow
Chief Executive Officer
Barbara commenced her role as Chief Executive on 2 March 2020, following three years as Chief Operating Officer for Wellington City Council. Prior to that she served nine years as the Chief Executive of New Plymouth District Council.
Barbara has approximately 30 years’ experience as a senior and executive leader in local government. She
has also served in several senior governance roles including a three- year term as the national President of the Society of Local Government Managers (SOLGM), where she is now recognised as a life member.
Her aim is to ensure the Council continues to develop as a high performing organisation and employer of choice, driving visible progress on the strategic priorities of the Council and delivering excellent service to the communities of Wellington.

Stephen McArthur
Chief Strategy & Governance Officer
Stephen was appointed to the Director role from 1 July 2019, after holding the position of Manager Community Networks for 15 months with the Council. Stephen has more than 30 years of experience in senior leadership and management roles in the public, private and not-for-profit sectors, including extensive local authority experience.
His current role has responsibility for iwi partnerships, strategy, policy and reporting, research, communications and engagement, assurance,
and governance. This includes responsibility for the Council’s Annual and Long-term Plans.

Meredith Blackler
Chief People & Culture Officer
Meredith was appointed as Director Human Resources in July 2019; this was renamed to Chief People & Culture Officer mid-2020. Meredith has more than 17 years’ experience in human resource management in both the education sector and local government.
In her role, she is responsible for human resources; payroll; safety, security and wellbeing; culture, staff engagement and building capability including leadership development.

James Roberts
Chief Digital Officer
James joined Council in December 2017 as the Smart Council Transformation Lead and was appointed to the CDO role at the end of March 2020. James has more than 30 years’ experience introducing
and leveraging technology across several industries, including banking, telecommunications, education and distribution.
In his role, he is responsible for customer experience across customer channels, IT services for staff, IT innovation to support city strategies and policies, and
developing an information and data- driven organisation.

Claire Richardson
Chief Operating Officer
Claire was appointed as Chief Operating Officer late April 2020. She was previously COO at Ministry for the Environment, and has been part of the senior leadership team at Auckland Council.
In her role, she is responsible for Arts, Culture and Community Services, including Libraries, Parks, Sport and Recreation, Parking Services, City Housing and Council- Controlled Organisations.

Andy Matthews
Chief Financial Officer
Andy has been CFO for six years. He has more than 20 years’ experience in local government finance and funding areas.
In this role, he is responsible for Financial Strategy and Treasury, Financial Accounting and Transactional Services, including rates, and Business Reporting, Analysis and Performance.
Andy resigned as Chief Financial Officer in March 2020. Sara Hay from Auckland Council was appointed to the role and started in July 2020.

David Chick
Chief City Planner
David was appointed as Council’s Chief City Planner in April 2016. He has more than 20 years’ experience in local government and integrated design in New Zealand and Australia.
He resigned from the role in March 2020. However, once COVID-19 restrictions were put in place, David agreed to stay on at Council until the end of the financial year to provide consistency in leadership during the pandemic.

Te Pūrongo ā-Tau Annual Report 2019—2020	Our leadership and our people	Te Pūrongo ā-Tau Annual Report 2019—2020	Our leadership and our people

Moana Mackay
Acting Chief Planning Officer
Moana is Chief Advisor to the City Planner and stepped into the acting role in April 2019 so David Chick could focus on preparing the Council for the Let’s Get Wellington Moving programme. She was the acting CCP

Other changes to ELT
Kevin Lavery
Chief Executive Officer
Chief executive Kevin Lavery left the job in March 2020. He was appointed CE in March 2013. Over the past seven years he has focused on urban
growth, renewal and resilience in

Chief Planning Officer
Moana Mackay acted in this role after David Chick left Council in June.
Liam Hodgetts joined the Council in this role in September 2020 from New Plymouth District Council.
This directorate is made up of five

Our organisation’s unifying purpose
Supporting the strategic Towards 2040 direction (see pg 12) is the Council’s organisational goal and values that focus on what we want to achieve as an organisation and how we will work together to deliver on Wellington’s ambitions for the future. They were reviewed and updated in July 2019, with extensive input from staff.

for the full 2019/20 year.

Wellington.
New ELT positions created
These positions were created in 2019/20 but there were delays in recruitment and implementation of the new structure due to COVID-19.
Head of Māori Strategic Relationships
Karepa Wall joined Council in September 2020 from the Ministry of Education for this role. His extensive experience working with iwi and the community will be invaluable to help Council achieve its vision of being a Te Reo City
by 2040. Karepa is of Manukorihi, Taranaki, Ngāti Ruanui, Ngāti Tūwharetoa and Te Ati Awa descent.
Chief Infrastructure Officer
Chief resilience officer Mike Mendonca acted in this role after David Chick left Council in June. Tom Williams was appointed as CIO on 29 July 2020. He started at Wellington City Council on 28
September from Palmerston North City Council.
This role incorporates the Property, Resilience and Sustainability,
and Transport and Infrastructure business units.

areas of five business units; Build Wellington, City Consenting and Compliance, City Design and Place Planning, Let’s Get Wellington Moving and Climate Change.
Director, Legal & Risk
Hayley was appointed as Director, Legal & Risk on 1 July 2019. She moved from Council in January 2020. After Hayley left, the role was disestablished and the Legal, Risk and Assurance Business Units moved back into the Strategy
& Governance directorate.

Our Council unifying purpose is:
Kia mahi ngātahi mō Pōneke mō tōna ā āpōpō
Working together for Wellington’s future

Our Council values:

He tangata, he tangata, he tangata We put people
at the heart of what we do
We anticipate our customers’ needs
We support our colleagues
We listen to our customers and each other
We act with integrity and respect

Whakapai ake
We’re always improving
We are open to new ideas and innovation
We encourage creativity
We learn from our mistakes
We give constructive feedback, compliment good work and reward success

Mahi ngātahi
We collaborate
We share our skills and knowledge
We have confidence in our colleagues
We work together to get the best results
We are accountable for our actions and decisions

Mana tiaki
We care for our places
We protect our environment for future generations
We are guardians of our city’s assets
We nurture our communities
We consider the impact of what we do

170	171

 	
Te Pūrongo ā-Tau Annual Report 2019—2020	Our leadership and our people	Te Pūrongo ā-Tau Annual Report 2019—2020	Our leadership and our people

Te whakarite i tō mātou noho haepapa
Making ourselves accountable

Wellington City Council Assurance Framework

We make ourselves accountable in many ways. This Annual Report is one. It explains what we did during 2019/20, how our work contributed to the city, what it cost, and whether our performance
met the expectations we set ourselves. Its contents have been independently scrutinised to ensure they fairly reflect our financial performance and position, and the services we’ve provided.
Transparency
The Local Government Official Information and Meetings Act 1987 ensures our community can access official information, participate in meetings and influence
local decision making. It also ensures that, as a public organisation, we promote good local government by being transparent in our work and accountable to our ratepayers and communities and independent authorities.
All meeting agendas and reports are publicly available at least two days before meetings in our libraries, at Arapaki and online at www.wellington.govt.nz. The minutes
of our meetings are made available on our website and we also live stream our full Council meetings.
While the provisions of the Local Government Official Information and Meetings Act allows us to exclude the public from meetings on special grounds (eg commercial

to deliver its business objectives and outcomes.
Good internal control systems are inbuilt in how we do things at the Council, with clear responsibilities and accountabilities across the organisation. Regular assurance is provided through multiple sources that systems and processes are working as intended.
The Council’s internal audit programme of work is designed to provide an overview of the effectiveness of the Council’s internal control environment.
Oversight for this programme of work is through the Finance, Audit and Risk Subcommittee (FARS).
Managing Risks
The Council’s Enterprise Risk Management framework is aligned to the International standard ISO31000 and is used across the organisation to proactively identify and manage the uncertainties on our strategic objectives. This framework enables us to review and set risk strategies that are appropriate
for the management of Council’s significant risks.
FARS has oversight to ensure that the risk management systems, processes and organisational risk management capability is appropriate for the effective management of risks. This subcommittee receives quarterly reports
related the efficacy of risk management practices, as well

Risk mitigation controls Quality control activities
Management review and oversight

Sources of assurance

First Line of Assurance: Business owners
Own risks and apply controls
Provide assurance over delivery of areas of responsibilities

Second Line of Assurance: Specialist Advice
Deploy organisational policies and monitor alignment of activities to those policies
Oversight of organisation- wide risks for functional areas of responsibilities
Provide technical advice and guidance

Third Line of Assurance: Independent Assurance
Provide advice and assurance over risk management, internal controls and governance processes.
Provide assurance that these activities are working as intended, and are supporting the achievement of business outcomes

Co-ordinate assurance activities

Risk management programme Compliance activities
Health and safety oversight

Other oversight activities

Fourth Line of Assurance: Sector-wide Assurance
Provides guidance, monitoring and reporting, research and other independent reviews
and recommendations:
Local Government Commission
Controller and Auditor-General
Office of the Ombudsman
The Parliamentary Commissioner for the
Environment
Privacy Commissioner
Other relevant state sector agencies

Internal audit programme

Project assurance activities and Independent quality assurance (IQAs)

Other independent reviews

K ey
assurance direction

sensitivity), we seek to make use of these provisions as infrequently as possible. We also ensure any decisions are communicated effectively to the community – through media releases, social media, web alerts, and our website. We also produce quarterly reports which are available to members of the public and media.
Assurance Framework
We have systems in place to guarantee that results are delivered in a way that meets the public’s expectations of accountability and responsibility. The Council’s Assurance Framework is based on international good practice of ‘lines of assurance’ working together to provide confidence to our ratepayers, communities and other stakeholders that the Council is well positioned

as an overview of the Council’s Strategic risk profile.
Operational risks, including health and safety risks, receive regular oversight by the Council’s Executive team and matters are escalated to FARS where appropriate in line with the Enterprise Risk Management framework.
Project risks are considered through the Project Boards, Elected Member portfolio and the relevant Committee groups to ensure that significant project risks are
being managed within the Council’s risk appetite.
The Council assesses its risk management practices against the All-of-Government Enterprise Risk Maturity Assessment Framework and will continue to improve its maturity over the coming years.

Finance, Audit and Risk Subcommittee
The subcommittee oversees the work of the Council in discharging its responsibilities in the areas of assurance as well as risk management, statutory reporting, internal and external audit, monitoring of
compliance with laws and regulations (including health and safety), and significant projects and programmes of work focusing on the management of risk.
The subcommittee met twice in the 2019-2020 year and attendance was 100 percent for both meetings. The subcommittee meets quarterly or as and when required; and had one meeting in 2020 cancelled due to the COVID-19 pandemic.
In the 2016-2019 triennium, membership was: Mayor Justin Lester, Councillor Diane Calvert,

Councillor Andy Foster (Chair), Councillor Sarah Free, Peter Harris (external), Phillippa Smith (external), and Roy Tiffin (external).
After the local government election in 2019, membership of the subcommittee was changed to: Mayor Andy Foster, Councillor Diane Calvert (Chair), Councillor
Jenny Condie (Deputy Chair), Councillor Iona Pannett, Councillor Tamatha Paul, Councillor Sean Rush, Roy Tiffin (External), and Linda Rieper (External).
The external appointments to FARS are recruited based on relevant skills and experience that brings value to the subcommittee, including financial knowledge, experience in risk management and governance, and local government experience.

Te Pūrongo ā-Tau Annual Report 2019—2020	Our leadership and our people

Te Pūrongo ā-Tau Annual Report 2019—2020

Our leadership and our people

 	

Ā mātou kaimahi
Our Staff

Our people are our greatest asset.

He Tangata – People
One of our strengths at Council is our people – we have many

Our staff, each year, through our annual engagement survey,

Staff numbers
by employee class*

Number	% of total

Staff numbers
by employee type*

Number	Ratio

Through their efforts
we can deliver great services to our diverse communities.

talented, hard-working staff right across Council, and much to celebrate and be proud of. This is especially true this year, with the unexpected challenges and opportunities that have come our way.

Korero Mai, tell us that they enjoy working at the Council and that it is a great place to work. Our most recent survey reinforced this and through the past 12 months we have continued to embed and improve upon our people-focused initiatives and strategies.

Permanent	1,580	87%
Fixed Term	86	5%
Casual	149	8%
Total*	1,815	100%
*excludes contractors

Full-Time	1,128	62%

Part-Time	538	30%

Casual	149	8%

Total	1,815	100%
*excludes contractors

Staff count by directorate and employee class

Permanent	Fixed Term

Directorate	Full-time	Part-time	Full-time	Part-time	Casual	Contractor Headcount FTE

Full-Time

Staff numbers
by employee type, gender and age*

Age brackets	Female	Male	Grand total
< 25yrs	62	53	115
25–40yrs	246	235	481

Customer and Community
Finance and Business
Infrastructure

464	442	20	14	134	0	1,074	688.1

47	5	1	0	0	0	53	50.9

41–55yrs	151	179	330
56–60yrs	40	62	102
61yrs+	45	55	100
Full-Time total	544	584	1128

and Delivery	123	13	8	4	10	0	158	143.9

Part-Time	< 25yrs	152	75	227

People

Planning and	211	16	17	5	5	0	254	244.3	

and Culture

Environment
Smart Council

Governance	84	10	4	2	0	1	101	97.1			25–40yrs	16	12	28	
Total	1070	510	58	28	149	2	1817	1391.2			41–55yrs	9	4	13	
		56–60yrs	1	1	2	
		61yrs+	6	4	10	
	Casual total		93	56	149	
	Total		1013	802	1815	
	*excludes contractors					

Strategy and

32	7	1	1	0	0	41	39.1

25–40yrs	86	49	135
41–55yrs	87	19	106

	61yrs+	22	10	32	
109	17	7	2	0	1	136	127.9	Part-Time total		376	162	538	

56–60yrs	29	9	38
Casual	< 25yrs	61	35	96

Te Pūrongo ā-Tau Annual Report 2019—2020	Our leadership and our people	Te Pūrongo ā-Tau Annual Report 2019—2020	Our leadership and our people

Breakdown by
length of service (LOS), gender and age

Ngā tohu kaimahi
Staff awards

Gender	LOS (years)	< 25yrs	25–40yrs	41–55yrs	56-60yrs	61yrs	Total	
Female	0–1 yr	101	90	26	9	5	231	
	1–2 yrs	76	71	40	4	2	193	
	2–5 yrs	89	100	63	8	9	269	
	5–10yrs	9	56	47	13	11	136	
	10–15yrs		23	32	12	11	78	
	15–20yrs		7	26	16	13	62	
	20–25yrs		1	11	5	9	26	
	25–30yrs			2	1	5	8	
	30–35yrs			1	2	5	8	
	Over 35yrs					3	3	
Female total		275	348	248	70	73	1014	
Male	0–1 yr	54	66	26	4	5	155	
	1–2 yrs	47	56	18	7	5	133	
	2–5 yrs	55	95	39	14	6	209	
	5–10yrs	7	60	45	15	7	134	
	10–15yrs		13	34	11	10	68	
	15–20yrs		6	20	4	11	41	
	20–25yrs			7	4	6	17	
	25–30yrs			6	5	3	14	
	30–35yrs			5	5	8	18	
	35–40yrs			2	1	2	5	
	Over 40yrs				3	6	9	
Male total		163	296	202	73	69	803	
Total		438	644	450	143	142	1817	

This is the second year we have run our internal staff awards. These awards are a way we can, as an organisation, celebrate the achievements of our people and to formally acknowledge
the high performers who are living our values, demonstrating strong leadership, and helping deliver real progress for our city.
The awards are peer and leader nominated under the following categories:

Reporting Period	Voluntary attrition	Involuntary attrition	Turnover (%)	
1 July 2017–30 June 2018	19.3%	2.0%	21.3%	
1 July 2018–30 June 2019	20.9%	1.7%	22.6%	
1 July 2019–30 June 2020	17.7%	1.4%	19.1%	

176				

Staff attrition

He tangata
Recognising exceptional achievement in customer service, working with the community, or in demonstrating care and respect for others.
Mahi ngātahi Recognising excellence in collaborating with others
inside and outside Council to achieve exceptional results.
Whakapai ake
Recognising innovative thinking that challenges the way we do things or improves our business processes.
Mana tiaki
Recognising an exceptional contribution towards making Wellington a great place
to live, work and play.
Emerging leader
Recognises individuals who have demonstrated leadership potential.

Leadership
Recognises individuals who positively influence others by demonstrating good leadership. The award is open to anyone
not just managers.
Ngā Kaha
Recognises a team who lives and breathes ‘our values – Ngā Kaha’.
Outstanding achievement during COVID-19
Two awards, one for an individual and one for a team who went above and beyond in their
work during COVID-19.
In 2020 we received 127 nominations for the awards, which is over 50 more than 2019. The announcement of the 2020 winners was delayed due to COVID-19 restrictions. They
were announced to all staff in November 2020.

177

Mahi Ngātahi
We Collaborate

Staff composition by gender

Diversity and inclusion
Our Diversity and Inclusion Strategy ‘Mō te katoa
– For everyone, for all’ was launched in October 2018 and has continued to be a focus over the past 12 months. Since July 2019, we have:
Submitted quarterly reporting to ELT about our diversity and inclusion data to provide insight and support decision making.
Opened our HR portal to staff in February, for staff to self-disclose diversity information including date of birth, Gender, Nationality, Ethnicity and Disability information.
Developed and rolled out flexible working options, including remote working, to support staff and managers during and post the COVID-19 lockdown. A continued focus on flexible
working will occur over the next 12 months.
Staff diversity profiles

Gender	Permanent	Fixed Term	Casual	Contractor	Grand total	
Female	55%	62%	62%	50%	56%	
Male	45%	38%	38%	50%	44%	
Total	100%	100%	100%	100%	100%	

Rolled out mental health first aid training with 127 Council managers completing this training through St John. This programme provides managers
with mental health awareness, and practical strategies to enable them to recognise and support staff who are experiencing mental distress.
Between 1 July 2019 and 30 June 2020, there were seven more females than males in Tiers 1 to 3 of the organisation and eight more females than males in Tier 4. Tier 1 is the Chief Executive and

Gender by organisation level

Tier level	Female	Male	Grand total

Tier 4 in general covers team leader roles. When
all 1,817 employees are considered, there are	2	3	4	7	
211 or 10 per cent more females than males with	3	27	20	47	
females making up 55 percent of our workforce.	4	80	72	152	
	5	217	176	393	
	6	253	242	495	
	7	418	273	691	
	8	15	16	31	
	Total	1,014	803	1,817	

1	1	1

Staff breakdown by organisation level, age and gender*

Gender	Age brackets Tier 2	Tier 3	Tier 4	Tier 5	Tier 6	Tier 7	Tier 8	Grand
total
Female	< 25yrs	18	43	207	7	275
25–40yrs	10	32	100	107	95	4	348
41–55yrs	2	12	39	63	60	70	2	248
56–60yrs	3	6	19	17	24	1	70
61yrs+	3	3	17	26	22	1	72
Female total	2	28	80	217	253	418	15	1013

Staff ethnicity

Ethnicity	Female	Male	Grand total
European	511	347	858
Māori	52	52	104
Asian	58	74	132
Pacific Peoples	25	19	44

41–55yrs	2	10	29	60	61	35	5	202		Latin American/		
56–60yrs	2	5	11	21	21	11	2	73		Other Ethnicity	108	86	194	

Male	< 25yrs		2	10	29	120	2	163	
	25–40yrs	4	24	63	109	89	7	296	

Middle Eastern/ African	17	8	25

	61yrs+		1	6	22	22	18		69	
Male total		4	20	72	176	242	273	16	803	
Total
*excludes CEO		6	48	152	393	495	691	31	1816	

Not Recorded	243	217	460
Total	1014	803	1817

Mana tiaki
Caring for our environment

Te Tauihu and
Te Tiriti o Waitangi
Our aspiration is for an organisation where everyone understands the importance of te reo Māori and feels supported using it. Being familiar with te reo, Māori aspirations, values and cultural customs helps us to acknowledge our unique cultural heritage
and identity, build stronger te reo communities and serve the people of Wellington more equitably.
To support this aspiration, an internal action plan has been created that identifies five domains in which to focus our efforts:
Critical awareness – understanding the context of te reo Māori within Wellington
Status – raising the mana of te reo within Wellington
Use – growing the application of te reo in Wellington
Acquisition – assisting people in Wellington to learn te reo
Corpus – accessing and collecting words to support te reo Māori in Wellington
While this is a longer-term aspiration, practically, we have already started on our journey. Over the past year we have:
Began a noho mārae development programme – 25 staff participated this year.
Raised the status of Mātauranga Māori as an important capability in our core capability framework (Ki te hoe) and integrated it into our senior
leader leadership development programme.
Continued to promote te reo Māori and cultural capability through core Learning and Development offerings including:
Te rito – an online, self-paced learning programme on history, iwi relationships, te reo Māori and knowledge of te Ao Māori. 174 staff completed
at least one of the four modules this year.
Te reo classes – offered at various experience levels to support staff to learn te reo Māori. 58 staff
have completed at least one course this year.
Focused workshops – designed to support staff to build capability in pronunciation, learn basic phrases and to construct and confidently deliver a mihimihi and pepeha. 20 staff have undertaken at least one workshop.

Over the past year we have
Seen kapa haka continue as an active continues and well attended group, with staff performing at pōwhiri, the Council’s inauguration ceremony and
other key and important internal and external events.
Te Wiki o te reo Māori was very well celebrated at Council with several cultural activities (for example, shared hāngī) and public displays of support (for example, a large group of Council staff walked
in the 2019 Te Wiki o te reo Māori parade).
Te reo is well on its way to being incorporated into official Council resources, tools, policies, strategies and our technology platforms. Our performance management plan and framework (Whare Tapa Toru),
learning management system (Whare Kura), knowledge base and IT ticket management system (Hiko) all
have te reo names, and many of our core strategies have both te reo names and bilingual content.
Te Tiriti o Waitangi
Wellington City Council also has Te Tiriti o Waitangi legislative obligations and considerations, which are reflected in how we work on a day-to-day basis. Some of the key documents that aid our approach include:
Iwi Memoranda of Understanding to work together, including providing cultural advice and activities.
Mahi Tahi agreement to work closely with Te Taura Whiri i te Reo Māori (Māori Language Commission) to revitalise the language
Te Tauihu – Te Reo Māori Policy and Action Plan
Spatial (Growth) Plan and the District Plan
Arts and Culture Strategy
Our community grants and funding criteria
Reserve Management Plans
Open Space Naming Policy: Kaupapa Whakaingoa Whenua Māhorahora
Road Naming Policy
Te Mahana Homelessness Strategy
Three Waters Strategy
Terms of reference and delegations that enable our two iwi mana whenua partners to sit as members of the City Strategy and Annual Plan/ Long-term Plan Committees.

Volunteers
One of the greatest assets of our city is our people. We are privileged to have hundreds of people willing to donate their time to ensuring the city is a better
place for all. Without all the help from these wonderful people, Wellington would not look or feel the same. Our network of volunteers is essential and many of them have worked in their own time for the city for decades.
Below are some examples of the great work volunteers contribute to Wellington.
Environmental volunteers
We continue to expand our network of volunteer trappers through the city, helping us maintain low pest animal numbers. We currently have 27 groups trapping across Wellington suburbs, including in residential backyards. There are also an additional 15 groups trapping on public land. Overall this environmental network consists of 11,381 community traps
Our volunteers have contributed a total of 57,851 hours to revitalising Wellington’s natural environment and they are vital in our dream of restoring our native bush covered hills and abundant native wild and
bird life. These volunteers include those who work in our Wellington Gardens and at the Berhampore
Nursery. Due to the COVID-19 lockdown, this number is significantly down from the 70,000-plus hours last year.
Wellington Gardens: 2,671 hours
Berhampore Nursery: 1,380 hours
Community volunteers: 53,800 hours
These hours include various activities across a range of sites, from beach clean ups to planting trees to guiding people around our amazing Wellington Gardens.

Libraries
In our libraries, volunteers work in three areas – shelving, housebound carriers and event presenters. Without this help our libraries would likely need additional staff resourcing. The volunteers are
a valued part of the libraries network.
Shelving volunteers: There are about 3 volunteers at any one time, doing an hour of work per week, mainly working in the South East Libraries. Most are doing activities such as Duke of Edinburgh,
or are unable to take on employment for some other reason, such as a disability.
Housebound carriers: These volunteers deliver books to and from library members who are housebound and unable to visit the library themselves for various mobility reasons. We currently have 40 volunteers
who deliver and uplift book deliveries every six weeks.
Event presenters: This year we engaged 15 people to present information talks within Libraries and Community Spaces. Most of these volunteers contributed on a single occasion only.

Planting volunteer

Whakapai ake
Improving

Development and training
We have continued to invest in core learning and development (L&D) initiatives for our staff. Our L&D investment is targeted to support an uplift in leadership, management use of IT systems, and
Mātauranga Māori, aligned to our culture programme.
This year the Culture and Capability team provided 52 different courses to staff. These are centrally provided and do not account for individual and team training provided by individual business units. Overall Council spent $1,593,000 on training (Business Units: $958,556 and Culture and Capability: $634,333). This equates to an average of $876 per employee. These figures are lower than last year due to face-to-face workshop training being cancelled during the COVID-19 Alert Levels.
Over the past 12 months Culture and Capability have invested in:

Refreshing our induction programme.
Continuing to develop our Te Pourewa Skills for Managers programme.
Developing learning to support the rollout of Microsoft Office 365.
Converting face-to-face learning into online content and webinars.
Providing access to wellbeing learning to support staff and managers during COVID-19 lockdown.

We received a good score in our Korero Mai staff engagement survey related to the statement ‘Wellington City Council provides opportunities for me to develop my skills and competencies and
actively encourages career development’, which was 67 percent. Further work over the next 12 months will be undertaken as part of the evolution of our Performance, Career and Development framework.

Health and Safety
In 2018, the Safety, Security and Wellbeing team received its first SafePlus review undertaken by an independent health and safety reviewer. Five improvement areas
were identified to take the Council’s current Health & Safety Systems from ‘Performing’ to ‘Leading’ and
these were in the areas of Health & Safety Leadership, Worker Engagement, and Risk management.
In response to the review, the Safety, Security and Wellbeing team adopted several improvements to address recommendations in the report including:

providing guidance material and tools for developing contractor health and safety plans and assessing risks on sites
revising processes to increase the number of ELT & Councillor health and safety observations undertaken
creating a hazard collaboration forum (3 forums have been held in 2019/20) to review and assess existing controls and design new controls for managing the Council’s significant hazards, and to increase worker and contractor participation.
We have recognised the need to provide Contractor Management Health & Safety training on a more regular basis driven by demand. We now use one- on-one or small group training tailored to the business project managers and contract managers.
During the year we upskilled 33 Health and Safety Representatives and 15 of them completed a component of training to enable them to support staff that may experience workplace bullying and harassment. This is part of the Council’s ongoing commitment to have a safe workplace culture, free from bullying and harassment.
Safety, Security and Wellbeing
The Quarterly Safety, Security and Wellbeing reports have included several key lag and lead indicators. This year was unique because the pandemic meant Council staff were at home during lockdown. This is reflected in an overall reduction in lead and lag indicators reported.

Safety
Lag indicators have included workplace injury and incident statistics. This year there was a:

decrease in worker near-miss incidents from 748 to 713
decrease in medical treatment incidents from 281 to 262
reduction in work related injury claims from 80 to 63.

The team has focused efforts on identifying near miss incidents where staff have incurred muscle strain
at an early stage and provided early intervention to ensure the injury doesn’t move to a medical treatment injury or lost time injury incident. As a result we have increased early interventions from 41 to 52 this year.
This year, the team has improved scrutiny of information entered in the Council’s incident reporting tool and, as a result, has achieved a 0 percent miscoding of incidents into hazard categories, which allows the Council to better identify hazard areas throughout the year.
Security
There was a reduction in trespass notices issued from 3 to 2, which were served on members of the public that had a history of bad behaviour while attending a Council facility.
In addition, there was a reduction in the number of incidents that were of an unlawful nature and needed to be notified to the police – from 107 to 85. The Council provided 79 staff with training on the management
of actual or potential aggression so they can keep themselves safe when personal confrontation is experienced (the Council’s Highest Risk Hazard).
Wellbeing
The Safety, Security and Wellbeing business unit recognised an increasing global trend in poor worker mental health. To address this trend and position our leaders to support staff that may be suffering from poor mental health, we provided 127 leaders with mental health first aid training.

COVID-19 impact and response
This year presented new challenges for the Safety, Security and Wellbeing team. Over and above the requirement to ensure staff safety in relation to possible exposure of the virus, additional work and resources were created to support staff during the Government’s various Alert Levels.
This included additional measures to keep those staff safe who were deemed as ‘Essential Workers’. Other responses included:

tracking at-risk staff and providing additional safety measures from exposure;
designing and implementing new mental health and wellbeing resources to provide additional support to staff during the lockdown period;
muscular skeletal risks and cybersecurity guidelines for working from home safely;
additional security and site lockdowns of Council assets and buildings during Level 4;
returning to work health and safety plans for business units; and
regular staff surveys throughout lockdown to monitor staff mental health and concerns so that prompt action could be taken to address these.

Regular staff surveys throughout lockdown monitored staff mental health and concerns so that prompt action could be taken to address these

Te Pūrongo ā-Tau Annual Report 2019—2020

Our leadership and our people

 	Te Awe Library

Awards
July 2019
Sept 2019
Nov 2019
Dec 2019
Feb 2020
July 2020

LLGNZ Awards,
Martin Jenkins excellence award for economic wellbeing for the Wellington Waterfront project

Association of Local Government Information Managers, Ultimate customer service centre award, runner up for Arapaki Service Centre

2019 New Zealand Architecture Awards, Planning & Urban Design category award for Kumutoto Pavilion with Isthmus Group

Toitū CarbonZero awards and certification for Wellington Zoo, ZEALANDIA and Wellington Gardens

New Zealand Event Awards, Best Local Government Event  2019  category finalist for ReCut – awards postponed to October

New Zealand Institute of Architecture Local
Awards, Public architecture winner for Waitohi Library and Community Hub (announcement delayed due to COVID-19)

LGNZ Awards, Creative New Zealand excellence award for cultural wellbeing for Visa Wellington on a Plate

New Zealand Institute of Landscape Awards:
Playgrounds category winner for Chimpanzee Park at Wellington Zoo; Institutional award of excellence for Discovery Garden at the

Botanic Garden; and Small Projects Award of Excellence for Eva and Leeds Street Laneways upgrades
Intelligent Communities Forum Smart21 Cities for 2020

185

Te Pūrongo ā-Tau Annual Report	2019—2020

184

 	 	 	 	 	 	 	

 	 	 	 	 	 	 	 	 	

 	 	 	 	 	

FSectionifonur

186

ancial

 	 	 	

statements

 	 	 	 	 	

187

 	
Te Pūrongo ā-Tau Annual Report 2019—2020	Financial Statements	Te Pūrongo ā-Tau Annual Report 2019—2020	Financial Statements

Ihirangi	Contents

Statement of Compliance and Responsibility

Council and Group Structure	190	Major budget variations	264	Wellington City Council is a territorial local authority	
Basis of Consolidation	191	Note 27: Revaluation reserves	266	governed by the Local Government Act 2002.	

Statement of Compliance and Responsibility	189
Other Significant Accounting Policies	192
COVID-19 Financial impact	195
Statement of Comprehensive Revenue

Major budget variations	198	Statement of cash flows	272	
Note 1: Rates revenue	199	Major budget variations	273	

and Expense	196
Note 2: Revenue from operating activities	201
Note 3: Investment revenue	204
Note 4: Vested assets and other revenue	205
Note 5: Fair value movements	206
Note 6: Finance expense	207
Note 7: Expenditure on operating activities	208
Note 8: Depreciation and amortisation	211

joint venture’s surplus or deficit	213	Note 36: Related party disclosures	288	
Note 10: Income tax	214	Note 37: Remuneration and staffing	293	

Note 9: Share of associates’ and

Statement of changes in equity	262
Note 28: Hedging reserve	268
Note 29: Fair value through other
comprehensive revenue and expense reserve	269
Note 30: Restricted funds	270
Note 31: Reconciliation of net surplus / (deficit) to net cash flows from operating
activities	274
Other disclosures	275
Note 32: Financial instruments	275
Note 33: Commitments	283
Note 34: Contingencies	285
Note 35: Joint Operations	287

Reporting entity

The primary purpose of the Council and Group is to provide goods or services for community or social benefits rather than making a financial return. As a defined public entity under the Public Audit Act 2001, the Council is audited by the Office of the Auditor General and is classed as a Public Sector Public Benefit Entity for financial reporting purposes.
The reported Council figures includes the results and operations of Wellington City Council and the Council’s interests as disclosed in Note 35: Joint operations (page 287).
The reported Group figures includes the Council
(as defined above), its controlled entities as disclosed in Note 19 (page 240) and the Council’s equity accounted interest in the associates and a joint venture as disclosed in Note 20 (page 241). A structural diagram of the
Council and Group is included on the following page 190.
Compliance

The financial statements have been prepared to comply with Public Sector Public Benefit Entity Accounting Standards (PBE accounting standards) for a Tier 1 entity12 and were authorised for issue by the Council
on 16 December 2020.
Responsibility
The Council and management accept responsibility for the preparation of the annual financial statements and judgements used in them. They also accept responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as
to the integrity and reliability of financial reporting.
In the opinion of the Council and management, the Annual Report for the year ended 30 June 2020 fairly reflect the financial position, results of operations and service performance achievements of Wellington City Council and Group.

Statement of Financial Position	216

Note 38: Events after the end of the reporting period

299

The Council and management of Wellington City Council

Major budget variations	218
Note 11: Cash and cash equivalents	219
Note 12: Derivative financial instruments	220
Note 13: Receivables and recoverables	221
Note 14: Other financial assets	223
Note 15: Non-current assets classified
as held for sale	225
Note 16: Intangibles	226
Note 17: Investment properties	228
Note 18: Property, plant and equipment	229
Note 19: Investment in controlled entities	240
Note 20: Investment in associates
and joint venture	241
Note 21: Exchange transactions, transfers and

Financial prudence	300
Funding impact statements	308

confirm that all the statutory requirements in relation to the Annual Report, as outlined in Schedule 10 of the Local Government Act 2002, including the requirement to comply with New Zealand Generally Accepted Accounting Practice (NZ GAAP) have been complied with.

taxes payable	247
Note 22: Revenue in advance	249
Note 23: Borrowings	250
Note 24: Employee benefit liabilities
and provisions	253
Note 25: Provisions for other liabilities	256
Note 26: Deferred tax	260

Andy Foster Mayor
16 December 2020

Barbara McKerrow Chief Executive
16 December 2020

Sara Hay
Chief Financial Officer
16 December 2020

12 A Tier 1 entity is defined as being either publicly accountable or large (ie expenses over $30m). Council exceeds the expenses threshold.

Council and Group Structure
Figure 1: Reporting entity structures
Wellington City Council Reporting Entity (Council) =

Basis of Consolidation
The Council and Group have adopted the new group standards, PBE IPSAS 34 to 38, in preparing these financial statements. In adopting these new standards, the Council and Group have updated the accounting policies for their investments in controlled entities, associates and joint ventures. Disclosures have also been updated for the new disclosure requirements of PBE IPSAS 38.

Wellington City Council

Porirua City Council Joint Operations

Spicer Valley Landfill 21.5%

Wastewater Treatment Plant 27.6%

Controlled entities

Karori Sanctuary Trust (t/a Zealandia) 100%

Wellington Zoo Trust 100%

Wellington Cable Car Limited
100%

Wellington Waterfront Limited 100%

Wellington Regional Economic Development Agency Limited (t/a WellingtonNZ) 80%

Wellington Museums Trust (t/a Experience Wellington) 100%

CreativeHQ Limited 80%

Wellington City Council Group Reporting Entity (Group) =

Council

Council's equity accounted interest in Associates and Joint Venture

Chaffers Marina Holdings Limited 10.72%

Wellington International Airport Limited 34%

Chaffers Marina Limited 10.72%

Wellington Water Limited 40%

All entities included within the Group are domiciled and operate in the Wellington region, New Zealand.
The percentages in the figures above, represent the Council’s interest and/or ownership (for accounting purposes) in each of the entities in the Group. Refer to Notes 19 and 20 (pages 240 to 241) for more information.

Joint arrangements
Joint arrangements are arrangements where two or more parties have joint control. The accounting treatment can vary according to the structure of the arrangement. There are two types of joint arrangements, either a joint operation or a joint venture.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint control is the agreed sharing of control of an arrangement by way of
a binding arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.
In the Council financial statements, the investments in joint ventures are carried at cost. In the Group financial statements, the Council’s share of the assets, liabilities, revenue and expenditure of joint ventures is included on an equity accounting basis as a single line.
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. For a joint operation the Council has a liability in respect of its share of joint ventures’ operational deficits and liabilities, and shares in any operational surpluses and assets.
The Council’s proportionate interest (ie. 21.5 percent of the Spicer Valley landfill) in the assets, liabilities, revenue and expenditure of joint operations is included in the financial statements of the Council and Group on a line-by-line basis.
Controlled entities
Controlled entities are entities that are controlled by the Council. Control exists where the Council is exposed, or has rights, to variable benefits (either financial or non-financial) and has the ability to affect the nature and amount of those benefits from its power over the entity. Power can exist over an entity if, by virtue of its purpose and design, the relevant activities and the way in which the relevant activities of the entity can be directed has been predetermined by the Council.

In the Council financial statements, the investment in controlled entities are carried at cost. In the Group
financial statements, controlled entities are accounted for using the purchase method where assets, liabilities, revenue and expenditure are added on a line-by-line basis. Where a non-controlling interest is held by another party in a Council controlled entity, the controlled entity is consolidated as if it was fully controlled and the share
of any surplus or deficit attributable to the non-controlling interest is disclosed within the Statement of Comprehensive Revenue and Expense.
All significant transactions between Group entities, other than rates, are eliminated on consolidation. Rates are charged on an arm’s length basis and are not eliminated to ensure that reported costs and revenues are consistent with the Council’s Annual Plan.
Associates
Associates are entities where the Council has significant influence over their operating and financial policies, but they are not controlled entities or joint ventures.
In the Council  financial  statements,  the  investments in associates are carried at cost. In the Group financial statements, the Council’s share of the assets, liabilities, revenue and expenditure of associates is included on
an equity accounting basis as a single line.
Council Controlled Organisations
The Council has established several Council Controlled Organisations (CCO’s) and Council Controlled Trading Organisations (CCTO’s) to help it achieve its goals for Wellington. These organisations were set up to independently manage Council facilities or deliver specific services and developments on behalf of Wellington residents. The performance of each CCO is reported on within the chapter on page 106. Council has made appointments to other organisations, which make them Council Organisations (as defined in the Local Government Act 2002), but they are not Council controlled or part of the Group.

Other Significant Accounting Policies
The following accounting policies are additional to the disclosures and accounting policies that are included within the relevant specific Notes forming part of the financial statements.

Change of accounting policies
There have been no elected changes in accounting policies during the financial period.
Changes to PBE accounting standards
The following new accounting standards have been issued with mandatory effect for the accounting period.
In April 2017, the XRB issued Impairment of Revalued Assets, which now scopes in revalued property, plant and equipment into the impairment accounting standards PBE IPSASs 21 and 26, which will require Council to assess at each reporting date whether

In November 2018, the XRB issued 2018 Omnibus amendments to PBE standards. These amendments are largely effective for periods beginning on or after 1 January 2019. Included in the Omnibus were amendments to PBE IPSAS 2 Cash Flow Statements effective for annual financial statements covering periods beginning on or after 1 January 2021 and these amendments are not yet adopted. There are no significant accounting implications for Council and the Group.
Significant standards, amendments and
interpretations issued but not yet effective

Basis of preparation
Measurement base
The measurement basis applied is historical cost, modified by the revaluation of certain assets and liabilities as identified in the accounting policies. The accrual basis of accounting has been used unless otherwise stated.
For the assets and liabilities recorded at fair value, fair value is defined as the amount for which an item could be exchanged, or a liability settled, between knowledgeable and willing parties in an arm’s-length
transaction. For investment property, non-current assets classified as held for sale and items of property, plant
and equipment which are revalued, the fair value is determined by reference to market value. The market value of a property is the estimated amount for which
a property could be exchanged on the date of valuation between a willing buyer and a willing seller in an arm’s- length transaction.
Amounts expected to be recovered or settled more than one year after the end of the reporting period are recognised at their present value. The present value of the estimated future cash flows is calculated using applicable inflation factors and a discount rate.
The financial statements are presented in New Zealand dollars, rounded to the nearest thousand ($000), unless otherwise stated.
The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements.

Exchange and non-exchange transactions
Revenue from exchange transactions
Revenue from exchange transactions arises where the Council provides goods or services to another entity or individual and directly receives approximately equal value in a willing arm’s length transaction (primarily in the form of cash in exchange).
Revenue from non-exchange transactions
Revenue from non-exchange transactions arises from transactions that are not exchange transactions. Revenue from non-exchange transaction arises when the Council receives value from another party without giving approximately equal value directly in exchange for
the value received.
An inflow of resources from a non-exchange transaction recognised as an asset, is recognised as revenue, except to the extent that a liability is also recognised in respect of the same inflow.
As Council satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non-exchange transaction recognised as an asset, it
reduces the carrying amount of the liability recognised and recognises an amount of revenue equal to that reduction.
Approximately equal value
Approximately equal value is considered to reflect a fair or market value, which is normally considered as an arm’s length commercial transaction between a willing buyer and willing seller. Some goods or services that Council provides (eg. the sale of goods at market rates) are defined as being exchange transactions. Only a few services provided by Council operate on a full user pays
(eg Parking), cost recovery or breakeven basis and these are considered to be exchange transactions unless they are provided at less than active and open market prices.
Most of the services that Council provides, for a fee,
are subsidised by rates (eg. The cost to swim in a Council pool) and therefore do not constitute an approximately equal exchange. Accordingly, most of Council’s revenue is categorised as non-exchange.

there is any indication that an asset may be impaired. However, where an impairment loss is recognised for an asset or group of assets, that is revalued, an entity is not necessarily required to revalue the entire class of assets to which that impaired asset, or group of assets, belongs. This amendment is effective for periods beginning on or after 1 January 2019.
In January 2017, the XRB issued the following new standards for interest in other entities effective for periods beginning on or after 1 January 2019:
PBE IPSAS 34 Separate financial statements
PBE IPSAS 35 Consolidated financial statements
PBE IPSAS 36 Investments in Associates and Joint Ventures
PBE IPSAS 37 Joint Arrangements
PBE IPSAS 38 Disclosures of interests in other entities
These replace accounting standards PBE IPSAS 6–8.
There are a number of significant differences between the two sets of standards, including:
A new definition of control and joint control (including a link between power and benefits).
New classifications of joint arrangements (joint ventures and joint operations). Specifically, the previous jointly controlled assets (Joint ventures with Porirua City Council) are now classed as joint operations and Wellington Water Limited, previously a jointly controlled entity, is now a joint venture.
There has been no resulting change to the Council and Group’s methods of accounting for the respective joint arrangements.
Proportionate consolidation is no longer permitted for those joint arrangements that are classified as joint ventures. No resulting change for Council or the Group as the equity method of accounting
was already used for the interest in Wellington Water Limited.
Additional disclosure requirements including more detailed disclosure of financial category totals and reconciliation between the recorded equity accounted value and the percentage of investment in the entity.

and not early adopted
Significant standards, amendments and interpretations issued but not yet effective and not early adopted which are relevant to the Group are:
In January 2017, the XRB also issued PBE IFRS 9 Financial Instruments to replace PBE IPSAS 29 Financial Instruments: Recognition and Measurement. With an effective date for annual periods beginning on or after
1 January 2021, but with early adoption permitted, the intention is not to adopt at this stage while the effects on Council and the Group are more thoroughly assessed. The main changes under PBE IFRS 9 are:
New financial asset classifications requirements for determining whether an asset is measured at fair value or amortised cost.
A new impairment model for financial assets based on expected losses, which may result in the earlier recognition of impairment losses.
Revised hedge accounting requirements to better reflect the management of risks.
Included in the 2018 Omnibus were amendments to PBE IPSAS 2 Cash Flow Statements effective for annual financial statements covering periods beginning on
or after 1 January 2021.
In March 2019, the XRB subsequently issued Effective date of PBE IFRS 9, which delayed the effective date out to 1 January 2022.
In March 2019, the XRB issued PBE IPSAS 41 Financial Instruments, with an effective date for reporting periods after 1 Jan 2022. This new standard supersedes most of PBE IPSAS 29 Financial Instruments: Recognition and Measurement. PBE IPSAS 41 also supersedes PBE IFRS 9 Financial Instruments above.
In November 2019, the XRB issued PBE FRS 48 Service Performance Reporting, with an effective date of 30 June 2022, for periods beginning on or after 1 January 2021. The objective of this Standard is to establish principles and requirements for an entity to present service performance information that is useful for accountability and decision-making purposes in a general purpose financial report. The Council and group have not yet assessed the effects of the new standards.

Judgements and estimations
The preparation of financial statements using PBE accounting standards requires the use of judgements, estimates and assumptions. Where material, information on the main assumptions is provided in the relevant accounting policy or in the relevant note.
The estimates and assumptions are based on historical experience as well as other factors that are believed to be reasonable under the circumstances. Subsequent actual results may differ from these estimates.
The estimates and assumptions are reviewed on an ongoing basis and adjustments are made where necessary.
Judgements that have a significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in the relevant notes. Significant judgements and estimations include landfill post-closure costs, asset revaluations, impairments, certain fair value calculations and provisions.
Goods and Services Tax (GST)
All items in the financial statements are exclusive of GST, with the exception of receivables, recoverables and payables, which are stated as GST inclusive. Where GST is not recoverable as an input tax, it is recognised as part of the related asset or expense.
Budget figures
The Annual Plan budget figures included in these financial statements are for the Council as a separate entity. The Annual Plan figures do not include budget information relating to controlled entities or associates. These figures are those approved by the Council at the beginning of each financial year following a period of consultation with the public as part of the Annual Plan process. These figures
do not include any additional expenditure subsequently approved by the Council outside the Annual Plan process. The Annual Plan figures have been prepared in accordance with GAAP and are consistent with the accounting policies adopted by the Council for the preparation of these financial statements.
Comparatives
To ensure consistency with the current year, certain comparative information has been reclassified where appropriate. This has occurred:
where classifications have changed between periods;
where the Council has made additional disclosure in the current year, and where a greater degree of disaggregation of prior year amounts and balances is therefore required; and
where there has been a change of accounting policy (There has been no change in the 2019/20 year).

COVID-19
Financial impact
An assessment of the main impacts of COVID-19 on the Council’s financial statements is outlined in Table 1
below with reference to the relevant Note to the financial statements for more detailed information.

Table 1: COVID-19 Financial impact Assessment

Item
Revenue

Financial impact
Lost revenue for facilities being closed and due to initiatives agreed
by Council to ease the impact of lockdown on residents and businesses Deferral of Quarter 4 rates payment
Teams unable to work during lockdown. Discretionary leave totalling
81,500 hours paid to 738 employees where alternative work was not available. Increase in annual leave liability
Downward trend in interest rates has increased the negative value of the interest rate swap portfolio
Reduction in payment timeframes from 20 to 5 days

Joint loan facility agreed between Council and Greater Wellington Regional Council for the Wellington Regional Stadium Trust

Provision of shareholder support to Wellington International Airport Limited

Provision of a ‘letter of comfort’ to CCOs and additional grant funding of up to $5.000m for 2020/21

Establishment of City Recovery Fund (CRF) being the aggregation of three existing funds (City Growth Fund, the Capital of Culture activity and Destination Wellington)

Valuation reports for investment property and infrastructural assets contain statements around the heightened uncertainty relating to COVID-19

Note
2

Rates postponement
Remuneration

1
N/A

Employee liabilities
Cash flow hedges

24
12

Payment terms
CCO support

21
34

CCO support

34

CCO support

34

City recovery fund

30

Revaluations

18

N/A

13,577

2,182
1,958

1,529
N/A

N/A 2,100
25,758

5,000

2,017

$000

Statement of comprehensive revenue and expense
For the year ended 30 June 2020

Note	Council		Group		
		Actual	Budget	Actual	Actual	Actual	
		2020	2020	2019	2020	2019	
		$000	$000	$000	$000	$000	
Revenue							
Rates	1	322,021	325,857	309,887	322,021	309,887	
Revenue from operating activities							
Development contributions	2	3,566	2,000	2,897	3,566	2,897	
Grants, subsidies and reimbursements	2	34,095	32,367	38,496	41,975	49,217	
Other operating activities	2	137,172	146,386	143,878	153,610	163,983	
Investments revenue	3	23,008	25,861	5,946	10,947	12,065	
Vested assets and other revenue	4	11,016	7,337	17,460	11,043	17,682	
Fair value gains	5	7,562	8,672	18,458	7,916	18,890	
Finance revenue	6	2,280	13	2,879	2,549	3,158	
Total revenue	540,720	548,493	559,901	553,627	577,779	

Expense						
Finance expense	6	(26,541)	(24,902)	(25,719)	(26,569)	(25,725)	
Expenditure on operating activities	7	(413,966)	(407,555)	(441,928)	(437,042)	(469,849)	
Depreciation and amortisation expense	8	(118,067)	(124,573)	(116,121)	(119,663)	(117,619)	
Total expense	(558,574)	(557,030)	(583,768)	(583,274)	(613,193)	
					
Operating surplus/(deficit) before
insurance proceeds	
Insurance proceeds	38
Share of equity accounted surplus/(deficit)	9
from associates and joint venture	(17,854)	(8,537)	(23,867)	(29,647)	(35,414)	
	
33,000	
–	
–	
33,000	
–	
	–	–	–	18,838	16,332	
Net surplus/(deficit) before taxation	15,146	(8,537)	(23,867)	22,191	(19,082)	
Income tax credit/(expense)	10	–	–	–	621	(187)	
Net surplus/(deficit) for the year	15,146	(8,537)	(23,867)	22,812	(19,269)	

Net surplus/(deficit) attributable to:						
Wellington City Council and Group	15,146	(8,537)	(23,867)	22,528	(19,553)	
Non-controlling interest	–	–	–	284	284	
	15,146	(8,537)	(23,867)	22,812	(19,269)	

Refer	Council		Group		

Net surplus/(deficit) for the year		Actual 2020
$000	Budget 2020
$000	Actual 2019
$000	Actual 2020
$000	Actual 2019
$000	
		
15,146	
(8,537)	
(23,867)	
22,812	
(19,269)	
Other comprehensive revenue and expense1
Items that will be reclassified to surplus/(deficit)
Cash flow hedges:
Fair value movement – net	SCIE2
Fair value through other comprehensive revenue and expense
Fair value movement – net	SCIE
Items that will not be reclassified to surplus/(deficit)
Non-controlling interest:
Movement in non-controlling interest
Revaluations:
Fair value movement – property, plant	SCIE
and equipment – net
Share of other comprehensive revenue
and expense of associates and joint venture
Fair value movement – property, plant	SCIE
and equipment – net	

(38,903)	

–	

(42,776)	

(39,330)	

(42,094)	
	
795	
–	
546	
772	
492	
	
–	
–	
–	
–	
–	
	
493,980	
204,856	
(3,256)	
493,980	
(3,256)	
	
–	
–	
–	
9,265	
4,761	
Total other comprehensive revenue and expense	455,872	204,856	(45,486)	464,687	(40,097)	
Total comprehensive revenue and expense for the year	
471,018	
196,319	
(69,353)	
487,499	
(59,366)	

Total comprehensive revenue and expense attributable to:						
Wellington City Council and Group	471,018	196,319	(69,353)	487,215	(59,650)	
Non-controlling interest	–	–	–	284	284	
	471,018	196,319	(69,353)	487,499	(59,366)	

Other comprehensive revenue or expense is non-cash in nature and only reflects changes in equity.

Statement of Changes in Equity – see page 262

The notes from pages 199 to 299 form part of and should be read in conjunction with the financial statements	The notes from pages 199 to 299 form part of and should be read in conjunction with the financial statements

Statement of Comprehensive Revenue and Expense – Major budget variations
Significant variations from budgeted revenues and expenses are as follows:

Note 1:
Rates revenue

Revenues were $25.227m higher than budgeted, major variances included:
$33.000m insurance proceeds related to CAB not in the budget
$3.836m lower rates revenue
$9.214m lower operating revenues largely due to the COVID-19 impact on Parking, Venues, swimming pools and recreation centres
$ 2.853m lower investment revenues due to COVID-19 related rent relief and a lower than expected airport dividend ($2.6m)
$1.110m lower than expected fair value increase on investment properties
$1.566m higher development contributions
$3.679m of unbudgeted vested assets of $7.599m and other gains, offset by non-realised asset sales.
$1.728m higher grants, subsidies and reimbursements
$2.267m higher interest revenues

Expenses were $1.544m more than budgeted, major variances included:
$1.639m higher finance costs due to increased debt levels
$6.411m of increased expenditure on operating activities with significant items being a $8.102m impairment for the Civic Precinct, and higher personnel and other general costs. Offsetting these were reduced costs associated with various planned programmes of work not being carried out or being delayed
$6.506m lower depreciation costs due to an underspend on the capital expenditure programme and the actual timing of assets being capitalised.

Net finance expense was $0.628m lower than budgeted reflecting lower than planned capital expenditure, which being debt funded, resulted in lower interest charges. In addition, the drop in the OCR during the year also lowered overall interest rate costs albeit on a higher level of debt.
Other comprehensive revenue and expense was $251.016m higher than budgeted, major variances included:
$23.683m higher surplus for the year
$38.903m of non-budgeted fair value movement in cash flow hedges
$289.124m higher than budgeted property, plant and equipment net revaluation

Table 2 : Rates revenue

General rates Targeted rates Metered water supply
Penalties and adjustments	Council		Group		
	2020
$000

184,013
120,926
15,716
1,366	2019
$000

175,031
118,168
15,605
1,083	2020
$000

184,013
120,926
15,716
1,366	2019
$000

175,031
118,168
15,605
1,083	
Total rates revenue	322,021	309,887	322,021	309,887	

The total amount of rates charged on Council owned properties that have not been eliminated from revenue and expenditure is $14.364m (2019: $14.521m). For the Group, rates of $14.448m (2019: $14.604m) have not been eliminated.

Table 3: Value of rating units
Total capital value of rating units Total land value of rating units

Rates remissions
Revenue from rates is shown net of rates remissions.
The Council’s Rates Remission and Postponement Policies provide for general rates to be partially remitted for rural open space; land used principally for games or sport and in special circumstances (where the rating policy is deemed to unfairly disadvantage an individual ratepayer). A remission of the Downtown targeted rate may also be granted to provide rates relief for downtown commercial property temporarily not fit for the purpose due to the property undergoing development and therefore not receiving the benefits derived by contributing to the Downtown targeted rate. The Council committed itself at the start of the year to certain remissions, which for the reporting period ended 30 June 2020 totalled
$1.278m (2019: $1.331m).

The revenue from rates for Wellington City Council was billed on the following rating information held as at 30 June 2019.
The number of rating units: 79,211 (30 June 2018: 78,724).

2020	2019	
$000	$000	
78,630,323	56,296,956	
40,454,135	23,453,009	

Non-rateable land
Under the Local Government (Rating) Act 2002 certain properties are non-rateable. This includes schools, churches, public gardens and certain land vested in the Crown. This land is non-rateable in respect of general rates but, where applicable, is rateable in respect of sewerage and water. Non-rateable land does not constitute a remission under the Council’s Rates Remission and Postponement Policies.

COVID-19
On 9 April 2020 Council agreed to support both residential and commercial ratepayers by providing the ability to defer the 2019/20 fourth quarter rates instalment, due 1 June 2020, without penalty for six months, provided that the ratepayer was able to meet certain criteria. Table 4 below details the breakdown of the deferments.

Note 2:

Table 5: Revenue from operating activities

Development contributions	Council		Group		
	2020
$000

3,566	2019
$000

2,897	2020
$000

3,566	2019
$000

2,897	
Grants, subsidies and reimbursements
Operating Capital	
8,034
26,061	
9,214
29,282	
15,505
26,470	
18,441
30,776	
Total grants, subsidies and reimbursements	34,095	38,496	41,975	49,217	

Other operating activities					
Fines and penalties	5,981	6,285	5,981	6,285	
Rendering of services	124,160	130,740	136,080	145,758	
Sale of goods	7,031	6,853	11,549	11,940	
Total other operating activities	137,172	143,878	153,610	163,983	
Total revenue from operating activities	174,833	185,271	199,151	216,097	

Revenue from operating activities

Table 4: Rates deferral	2020
$000	
Residential	186	
Commercial	1,996	
Total	2,182	

Rates are set annually by resolution from the Council and relate to a particular financial year. All ratepayers are invoiced within the financial year for which the rates have been set. Rates revenue is recognised in full as at the date when rate assessment notices are sent to the ratepayers. Rates are a tax as they are payable under the Local Government Ratings Act 2002 and therefore meet the definition of non-exchange.
Water rates by meter are regulated in the same way as other rates and are taxes that use a specific charging mechanism to collect the rate. However, as the rates charged are primarily based on a per unit of consumption basis, water rates by meter are considered to be more in the nature of an exchange transaction.
Revenue from water rates by meter is recognised on an accrual basis based on usage.

Relevant significant accounting policies

For the Council, the principal grants and reimbursements are from the New Zealand Transport Agency (NZTA), which reimburses part of the Council’s costs for maintaining the local roading and cycling infrastructure. The capital reimbursements recognised from NZTA of $25.414m (2019: $29.331m) and operating reimbursements of
$7.616m (2019: $7.983m) are for costs already incurred and there are no unfulfilled conditions or other contingencies relating to the reimbursements.
For revenue from other operating activities of Council, the main services provided were:
– City housing – $26.470m (2019: $23.310m)
Parking fees and permits – $20.326m (2019: $22.067m)
Landfill operations and recycling – $16.328m (2019: $13.422m) – including unbudgeted revenue from the joint operations with Porirua City Council $1.693m (2019: $1.780m).
Consents and licensing services – $13.551m (2019: $15.609m)
Convention and conferences centres – $8.460m (2019: $13.037m)
See Figure 2 for a five-year trend analysis of these major revenue streams.

COVID-19: Revenue impacts
The COVID-19 lockdown had an impact on the Council’s non-rates revenue for the year ending 30 June 2020. This impact was both due to lost revenue for facilities being closed but also due to initiatives agreed by Council to ease the impact of lockdown on residents and businesses. These initiatives included reducing alcohol and food licence fees, providing a rebate for pavement licence holders and freezing swimming pool and council gym membership costs for the duration of the lockdown.
Of the major revenue streams in Figure 2, City Housing and Landfill Operations revenues continued to increase year on year, while Parking, Consents and Venues all had a decrease compared to the previous year and budget, primarily due to the impact of COVID-19.

Figure 2: 5-year trend for major revenue streams ($000)
30,000

25,000

20,000

$000

15,000

10,000

5,000

0

City Housing
Parking fees and permits Consents and
licensing services
Landfill operations and recycling
Convention and conferences centers

Revenue from operating activities is generally measured at the fair value of consideration received or receivable.

Relevant significant accounting policies

The Council undertakes various activities as part of its normal operations which generates revenue, but generally at below market prices or at fees and user charges subsidised by rates. The following categories (except where noted) are classified as transfers, which are non-exchange transactions other than taxes.
See Note 13: Receivables and recoverables (page 221), for an explanation of exchange and non-exchange transactions, transfers and taxes.
Development contributions
Development contributions are recognised as revenue when the Council provides, or is able to provide, the service for which the contribution was charged. Until such time as the Council provides, or is able to provide the service, development contributions are recognised as liabilities.

Fines and penalties
Revenue from fines and penalties (eg. traffic and parking infringements and library overdue book fines) is recognised when infringement notices are issued
or when the fines/penalties are otherwise imposed. In particular the fair value of parking related fines is determined based on the probability of collecting fines considering previous collection history and a discount for the time value of money.
Rendering of services
Revenue from the rendering of services (eg. building consent fees) is recognised by reference to the stage of completion of the transaction, based on the actual service provided as a percentage of the total services
to be provided. Under this method, revenue is recognised in the accounting periods in which the services are provided. Some rendering of services are provided
at a market rate or on a full cost recovery basis
(eg Parking fees) and these are classified as exchange.

2016

5-year Trend analysis

2017

2018

2019

2020

Grants, subsidies and reimbursements
Grants, subsidies and reimbursements are initially

Sale of goods
The sale of goods is classified as exchange revenue.

City Housing – Due to annual rent increases, in line with market movements, revenues have generally increased over time considering some loss of rent during the upgrade project in earlier years. Revenue also improved during the 2019–20 year due to the lease agreement with Kainga Ora for Te Mara (previously Arlington 2).

Parking fees and permits – Revenue was tracking favourably in line with the trend from previous years and with the current budget before the COVID-19 lockdown. Free parking during the lockdown period impacted on the final result for the 2019–20 year.

Consents and licensing services – Revenue has been relatively consistent over the 5-year period except for a decline in the 2019/20 year which was driven by the impacts of COVID-19. Revenue was tracking close to the budget up until February.

Landfill operations and recycling – Revenue increased following the Kaikoura earthquake in 2016 with subsequent building demolitions and clearances.  Additional revenue for contaminated and special waste from city and regional projects has maintained the high revenue levels.

Convention and conference centres – Revenues were slightly lower considering the longer-term lower levels due to previous closures of the St. James Theatre and the Michael Fowler Centre car park. However, with the COVID-19 impact of next to no events being able to be held revenues dropped dramatically in the last quarter of the 2019–20 year.

recognised at their fair value where there is reasonable assurance that the monies will be received and all attaching conditions will be complied with. Grants and subsidies received in relation to the provision of services are recognised on a percentage of completion basis.
Reimbursements (e.g. NZ Transport Agency roading claim payments) are recognised upon entitlement, which is when conditions pertaining to eligible expenditure have been fulfilled.

Sale of goods is recognised when products are sold to the customer and all risks and rewards of ownership have transferred to the customer.

Note 3:
Investment revenue

Table 6: Investment revenue

Dividend from associates Dividend from equity investments Investment property revenues	Council		Group		
	2020
$000

12,061
86
10,861	2019
$000

13,881
537
11,528	2020
$000

– 86
10,861	2019
$000

– 537
11,528	
Total investment revenue	23,008	25,946	10,947	12,065	

Dividends
Dividends from equity investments are recognised when the Council’s right to receive payment has been established.
Investment property lease rentals
Lease rentals (net of any incentives given) are recognised on a straight-line basis over the term
of the lease unless another systematic basis is more representative of the time pattern in which benefits derived from the leased asset is diminished.

Relevant significant accounting policies

Dividends
The dividend from associates was from Council’s 34 percent holding in Wellington International Airport Limited.
The higher equity investment dividend received in 2018/19 was largely the $0.441m from Civic Financial Services Limited, following the sale of its building, Civic Assurance House.
The Council continues to maintain its current level of investment as it considers the dividend stream adds diversity to normal rates revenue. The investment portfolio is presently maintained as it is strategically, financially and economically prudent to do so.

For further information refer to Note 20: Investment in associates and joint venture (page 241).
Investment properties
The revenues from investment properties are primarily from ground leases around the CBD and on the waterfront. The Council periodically reviews its continued ownership of investment properties by assessing the benefits against other arrangements that could deliver similar benefits. Any assessment is based on both the strategic benefit of the investment/ownership and in terms of the most financially viable method of achieving the delivery of Council services.
For further information refer to Note 17: Investment properties (page 228).

Note 4:
Vested assets and other revenue

Table 7: Vested assets and other revenue

Vested assets Other revenue	Council		Group		
	2020
$000

7,599
3,417	2019
$000

13,411
4,049	2020
$000

7,609
3,434	2019
$000

13,411
4,271	
Total vested assets and other revenue	11,016	17,460	11,043	17,682	

Donated, subsidised or vested assets
Where a physical asset is acquired for nil or nominal consideration, with no conditions attached, the fair value of the asset received, as determined by active market prices, is recognised as non-exchange revenue when the control of the asset is transferred to
the Council.
Gains
Gains include additional earnings (ie. Sale proceeds in excess of the book value) on the disposal of property, plant and equipment.
Donated services
The Council benefits from the voluntary service of many Wellingtonians in the delivery of its activities and services (eg. beach cleaning and Otari-Wilton’s Bush guiding and planting). Due to the difficulty in determining the precise value of these donated services with sufficient reliability, donated services are not recognised in these financial statements.

Relevant significant accounting policies

Vested assets are principally infrastructural assets such as roading, drainage, waste and water assets that have been constructed by developers. As part of the consents process, ownership of these assets is transferred to the
Council, and on completion they become part of the city’s network. Although vested assets are non-cash in nature and represent a future obligation to the Council, as the Council will have the on-going costs associated with maintaining the assets, they are recognised as revenue
in accordance with the applicable accounting standard. The breakdown of principal vested assets received is:
Drainage, waste and water – $4.362m (2019: $8.082m). (The 2018/19 amount included $3.161m from the Crown in relation to emergency water stations to add to the resilience of the city.)
Roading – $2.453m (2019: $4.148m)
Carbon credits – $0.785m (2019: $0.047m)

Other revenue consisted of:
Gains on disposal of assets – $1.431m (2019: $0.316)
Capital expenditure recovered – $1.114m (2019: $2.011m)

Fuel tax – $0.999m (2019: $1.139m)

Note 5:
Fair value movements

Table 8: Fair value movements

Investment property revaluation Amortisation of loans to related parties Fair value gain on investments	Council		Group		
	2020
$000

7,558
4
–	2019
$000

18,454
4
–	2020
$000

7,558
11
347	2019
$000

18,454
10
426	
Total fair value movements	7,562	18,458	7,916	18,890	

Gains
Gains include increases on the revaluation of investment property and in the fair value of financial assets and liabilities.
Investment properties
Investment properties are measured initially at cost and subsequently measured at fair value, determined annually by an independent registered valuer. Any gain or loss arising is recognised within surplus or deficit.
Investment properties are not depreciated.
Derivatives
Movements on derivatives at fair value through surplus or deficit represents the fair value movements on interest rate swaps that do not meet the criteria for hedge accounting. Movements in the Group’s other derivatives that meet the criteria for hedge accounting, are taken to the cash flow hedge reserve and have no impact on the net surplus / (deficit) for the year.

Relevant significant accounting policies

Investment properties, which are revalued annually, are held primarily to earn lease revenue and/or for capital growth. These properties include the Council’s
ground leases and certain lands and buildings, including the Wellington Waterfront investment properties. For more information refer to Note 17: Investment properties (page 228).

Note 6:
Finance expense

Table 9: Finance expense and net finance cost

Interest on borrowings Interest on finance leases
Re-discounting of interest on provisions	Council		Group		
	2020
$000

25,391
– 1,150	2019
$000

25,056
– 663	2020
$000

25,413
6
1,150	2019
$000

25,060
2
663	
Total finance expense	26,541	25,719	26,569	25,725	

Less
Finance revenue – interest earned	

2,280	

2,879	

2,549	

3,158	
Net finance cost	24,261	22,840	24,020	22,567	

Interest on borrowings
Interest expense is recognised using the effective interest rate method. All borrowing costs are expensed in the period in which they are incurred.
Re-discounting of interest
Re-discounting of interest on provisions is the Council’s funding cost for non-current provisions
(where the cash flows will not occur until a future date). For further information refer to Note 24: Employee benefit liabilities and provisions (page 253) and
Note 25: Provision for other liabilities (page 256).
Interest earned
Interest earned is recognised using the effective interest rate method.

Relevant significant accounting policies

A decline in interest rates during the year, as a result of two reductions in the Official Cash Rate (OCR) totalling
1.25 percent, has reduced average borrowing costs. These savings were offset by additional interest incurred on a higher level of gross borrowings.
Council’s policy is to have the majority of borrowings on fixed interest rates to avoid volatility in its interest
expense as interest rates change. To achieve this, it uses interest rate swaps, which effectively changes floating rate debt to fixed rate debt.
Returns on investment deposits are also market related so have reduced accordingly as interest rates have fallen.

Note 7:
Expenditure on operating activities

Governance and employment
Governance costs relate to the remuneration made to all elected members, comprising the Mayor, Councillors and Community Board members and also to directors appointed to boards of controlled entities.
Employment costs relate to the remuneration paid directly to staff, other employee benefits such as KiwiSaver and other associated costs such as recruitment and training.
During the year $0.947m (2019: $0.684m) of termination benefits were incurred by the Council and $0.995m (2019:
$0.945m) by the Group. Termination benefits include all payments relating to the end of employment other than unpaid salary and leave entitlements.

General

Termination benefits include both contractual
(eg redundancy, in lieu of notice) and non-contractual (eg severance) payments.
For further information refer to Note 37: Remuneration and staffing levels (page 293)
Impairments
The main impairments for the current year are within the Civic Precinct, largely the Municipal Office Building (MOB) – $2.180m and the Town Hall – $4.943m. For the
previous year the impairments were also mainly due to the Civic Precinct. For more detailed information on these impairments see Note 18: Property, plant and equipment (page 229).

Table 11: Auditors' remuneration

Audit services – Audit New Zealand – Financial Statements Audit services – Audit New Zealand – LTP and LTP Amendment Audit services – Audit New Zealand – other
Audit services – Other Auditors	Council		Group		
	2020
$000

306
– 13
–	2019
$000

301
148
12
–	2020
$000

538
– 13
75	2019
$000

499
148
12
74	
Total auditors' remuneration	319	461	626	733	

Table 10: Expenditure on operating activities

Governance and employment
Elected member remuneration
Independent directors/trustees fees for controlled entities Employee benefits expense:
Remuneration
Superannuation contributions (including KiwiSaver) Other personnel costs

Impairments
Bad debts written off not previously provided for
Increase in provision for impairment of receivables and recoverables Impairment of property, plant and equipment
Impairment of investments

Insurance
Insurance premiums Insurance reserve costs – net

General
Administration Costs Auditor's remuneration:
Contractors
Contracts, services and materials Grants
Information and communication technology Loss on disposal of intangibles
Loss on disposal of property, plant and equipment Loss on investments
Operating lease – minimum lease payments Professional costs
Reassessment of weathertight provision Utility costs	Council		Group		
	2020
$000

1,803
–

102,372
2,938
4,380

6
293
10,183
–

17,017
688

5,586
319
4,198
150,862
42,711
16,681
2
776
– 7,056
10,795
4,622
30,678	2019
$000

1,649
–

92,056
2,701
4,501

132
497
50,603
49

15,528
1,709

6,269
461
4,633
147,962
38,516
16,336
225
766
– 4,460
20,856
2,794
29,225	2020
$000

1,803
438

131,229
3,558
5,407

13
293
10,183
–

17,643
688

16,272
626
6,485
151,898
15,849
17,738
2
878
296
8,179
11,315
4,622
31,627	2019
$000

1,649
451

119,804
3,321
5,374

136
497
50,603
95

16,105
1,709

20,373
733
7,728
149,466
13,193
17,343
225
833
– 5,672
21,446
2,794
30,299	
Total expenditure on operating activities	413,966	441,928	437,042	469,849	

During the period Audit New Zealand provided other services to the Council, namely assurance services relating to the Clifton Terrace Carpark managed by the Council on behalf of the New Zealand Transport Agency and assurance services relating to Council’s debenture trust deed compliance (see Table 11 above).
Direct costs are costs directly attributable to the rendering of Council services, including contracts, maintenance, management fees, materials and services.
Grants include the operating grants to Council’s controlled entities (refer to Note 36: Related party disclosures for
a breakdown (page 288). Other major grants include the funding to the Museum of

New Zealand, Te Papa Tongarewa $2.250m (2019:
$2.250m).
Operating lease minimum lease payments are for non-cancellable agreements for the use of office or other spaces in buildings.
For further information in relation to the Weathertight homes provision. Refer to Note 25: Provisions for other liabilities (page 256).
Utility costs are those relating to the use of electricity, gas, and water. It also includes the payment of rates and water meter charges of $14.364m (2019: $14.521m) on Council owned properties.

Grants and sponsorships
Expenditure is classified as a grant or sponsorship if it results in a transfer of resources (eg. cash or physical assets) to another entity or individual in return for compliance with certain conditions relating to the operating activities of that entity. It includes any expenditure arising from a funding arrangement with another entity that has been entered into to achieve the objectives of the Council. Grants and sponsorships are distinct from donations which are discretionary or charitable gifts. Where grants and sponsorships are discretionary until payment, the expense is recognised when the payment is made. Otherwise, the expense is recognised when the specified criteria have been fulfilled.
Cost allocation
The Council has derived the cost of service for each significant activity (as reported within the Statements of Service Performance). Direct costs are expensed directly to the activity. Indirect costs relate to the overall costs of running the organisation and include staff time, office space and information technology costs. These indirect costs are allocated as overheads across all activities
Research and Development
Research costs are expensed as incurred. Development expenditure on individual projects is capitalised and recognised as an asset when it meets the definition and criteria for capitalisation as an asset and it is probable that the Council will receive future economic benefits from the asset. Assets which have finite lives are stated at cost less accumulated amortisation and are amortised on a straight-line basis over their
useful lives.

Relevant significant accounting policies

COVID-19: Expenditure impacts
The COVID-19 lockdown impacted the Council’s expenditure for the 2019/20 year. This did result in cost savings in some areas, for example in events that did not occur, and there were some cost savings for utilities (electricity and gas) where facilities were closed. There was some additional expenditure incurred such as additional grants being provided, costs for ‘Keep Left’ street decals, street closures, messaging around parking changes and some other contract variations.
The Council had a number of teams that could not work during alert levels 3 and 4 as some services and facilities were not available or deemed to be essential services. For staff that were unable to work the Council looked for alternative work options including redeployment, online training and providing online services to customers. If the Council was unable to provide staff with work, it provided paid discretionary leave for their ordinary hours.
For the year ending 30 June 2020, 738 out of 1,815 employees were provided paid discretionary leave for being unable to perform their normal duties totalling 81,500 hours and $1.958m.

Note 8:
Depreciation and amortisation

Table 12: Depreciation and amortisation

Depreciation Buildings Civic Precinct
Restricted buildings
Drainage, waste and water infrastructure Landfill post closure
Library collections
Plant and equipment Roading infrastructure	Council		Group		
	2020
$000

29,967
1,411
1,650
36,227
272
2,387
11,445
31,156	2019
$000

30,938
2,732
1,578
35,512
12
2,142
9,909
29,569	2020
$000

30,135
1,411
1,650
36,227
272
2,387
12,745
31,156	2019
$000

31,091
2,732
1,578
35,512
12
2,142
11,145
29,569	
Total depreciation

Amortisation
Computer software	114,515

3,552	112,392

3,729	115,983

3,680	113,781

3,838	
Total amortisation	3,552	3,729	3,680	3,838	
Total depreciation and amortisation	118,067	116,121	119,663	117,619	

Depreciation
Depreciation is provided on all property, plant and equipment, with certain exceptions. The exceptions are land, restricted assets other than buildings, and assets under construction (work in progress). Depreciation is calculated on a straight-line basis, to allocate the cost or value of the asset (less any assessed residual value) over its estimated useful life. (See Table 13)
The landfill post closure asset is depreciated over the life of the landfill based on the capacity of the landfill.
Amortisation
The amortisation of intangible assets is charged on a straight-line basis over the estimated useful life of the associated assets. (See Table 14)

Relevant significant accounting policies

Depreciation (amortisation) is an expense charged each year to reflect the estimated cost of using our assets over their lives. Amortisation relates to ‘intangible’ assets such as software (as distinct from physical assets, which are covered by the term depreciation).

2020
Useful Life (years)

unlimited 2–150
2–67
1–296
4–11
unlimited

unlimited 2–266
7–402

Table 13: Estimated useful lives of tangible assets

Asset Category
Land Buildings Civic Precinct
Plant and equipment Library collection
Restricted assets (excluding buildings) Infrastructure assets:
Land (including land under roads) Roading
Drainage, waste and water

The variation in the range of lives for infrastructural assets is due to these assets being managed and depreciated by individual component rather than as a whole asset.

Table 14: Estimated useful lives of intangible assets

2020
Useful Life (years)

2–11

Asset Category
Computer software

Computer software has a finite economic life and amortisation is charged to surplus or deficit on a straight- line basis over the estimated useful life of the asset.

Note 9:
Share of associates’ and joint venture’s surplus or deficit
The Council’s share of the results of the Chaffers Marina Holdings Limited, Wellington International Airport Limited and Wellington Water Limited is as shown in Table 15.

Table 15: Share of associates' and joint venture's surplus or (deficit)

Associates
Chaffers Marina Holdings Limited Wellington International Airport Limited

Joint venture
Wellington Water Limited	Group		
	2020
$000

(45)
18,983

(100)	2019
$000

(6)
16,327

11	
Total share of associates' and joint venture's surplus or (deficit)	18,838	16,332	

Associates are entities where the Council has significant influence over their operating and financial policies, but they are not controlled entities or joint ventures. In the Council financial statements, the investments in associates are carried at cost. In the Group financial statements, the Council’s share of the assets, liabilities, revenue and expenditure of associates is included on an equity accounting basis as a single line.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint control is the agreed sharing of control of an arrangement by way of a binding arrangement, which
exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. In the Council financial statements, the investments in joint ventures are carried at cost. In the Group financial statements, the Council’s share of the assets, liabilities, revenue and expenditure of joint ventures is included on an equity accounting basis as
a single line.

Relevant significant accounting policies

Further information on the cost and value of the above investments is found in Note 20: Investments in Associates and Joint Venture (page 241).
COVID-19
Due to the balance date of Wellington International Airport Limited (WIAL) being 31 March 2020, no significant financial impacts due to COVID-19 are reflected in the share of their surplus. Council also agreed to underwrite its share of a potential equity raising. For more information refer to Note 34: Contingencies (page 285).

Note 10:
Income tax

Table 16: Income Tax

Current tax expense/(credit)
Current year
Prior period adjustment	Council		Group		
	2020
$000

–
–	2019
$000

–
–	2020
$000

(232)
–	2019
$000

132
(99)	
Total current tax expense/(credit)	–	–	(232)	33	

Deferred tax expense/(credit)
Origination and reversal of temporary differences Change in unrecognised temporary differences Recognition of previously unrecognised tax losses	

(15)
– 15	

3
(3)
–	

(389)
–
–	

154
–
–	
Total deferred tax expense/(credit)	–	–	(389)	154	
Total income tax expense/(credit)	–	–	(621)	187	

Reconciliation of tax on the surplus/(deficit)	Council		Group		
and tax expense/(credit)					
	2020	2019	2020	2019	
	$000	$000	$000	$000	

Surplus/(deficit) for the period before taxation	
15,146	
(23,867)	
22,191	
(19,082)	

Prima facie income tax based on domestic tax rate – 28%	
4,241	
(6,683)	
6,214	
(5,343)	
Effect of non-deductible expenses and tax exempt income	(4,256)	6,683	(8,749)	4,610	
Current years loss for which no deferred tax asset was recognised	15	3	15	104	
Recognition of prior year loss	–	–	–	3	
Previously unreognised tax losses now utilised	–	–	10	–	
Change in unrecognised temporary differences	–	–	–	(84)	
Prior period adjustment	–	(3)	–	(103)	
Reintroduction of tax depreciation on buildings	–	–	(129)	–	
Overseas withholding tax non-reclaimable	–	–	6	–	
Share of income tax of equity accounted associates	–	–	2,012	1,000	
Under/(over) provision of income tax in previous period	–	–	–	–	
Total income tax expense/(credit)	–	–	(621)	187	

Group		
2020	2019	
$000	$000	

587	
281	

Imputation credits

Imputation credits available in subsequent periods

Council, as a local authority is only liable for income

Relevant significant accounting policies

tax on the surplus or deficit for the year derived from any council-controlled trading organisations. Other members of the Group are subject to normal taxation unless they have tax exempt status as charitable trusts.

Income tax expense includes components relating to both current tax and deferred tax.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the end of the reporting period, plus any adjustment to tax payable in respect of previous periods.

Statement of Financial Position
As at 30 June 2020

Note	Council		Group		
		Actual	Budget	Actual	Actual	Actual	
		2020	2020	2019	2020	2019	
		$000	$000	$000	$000	$000	
Assets							
Current assets							
Cash and cash equivalents	11	98,577	130,600	135,246	113,285	149,089	
Receivables and recoverables	13	95,467	54,581	53,962	96,888	55,911	
Other financial assets	14	31,488	–	9,320	33,488	10,570	
Prepayments		8,717	22,130	18,203	9,675	19,387	
Inventories		1,549	1,617	998	2,248	1,386	
Non-current assets classified as held for sale	15	6,415	–	19,744	6,415	19,744	
Total current assets	242,213	208,988	237,473	261,999	256,087	

Non-current assets						
Other financial assets	14	16,131	14,667	14,844	17,976	16,983	
Intangibles	16	25,714	26,709	25,204	25,828	25,458	
Investment properties	17	258,515	263,740	255,478	258,515	255,478	
Property, plant and equipment	18	7,809,894	7,566,684	7,223,566	7,825,777	7,239,892	
Investment in controlled entities	19	5,071	5,998	5,071	–	–	
Investment in associates and joint venture	20	19,033	19,465	19,465	210,956	195,773	
Total non-current assets	8,134,358	7,897,263	7,543,628	8,339,052	7,733,584	
Total assets	8,376,571	8,106,251	7,781,101	8,601,051	7,989,671	

Note	Council		Group		
		Actual	Budget	Actual	Actual	Actual	
		2020	2020	2019	2020	2019	
		$000	$000	$000	$000	$000	
Liabilities							
Current liabilities							
Derivative financial liabilities	12	709	–	985	709	985	
Exchange transactions and transfers payable	21	57,417	63,734	65,366	60,404	70,452	
Taxes payable	21	8,185	–	6,599	8,458	6,780	
Revenue in advance	22	14,302	15,277	14,073	19,333	17,395	
Borrowings	23	186,000	126,000	125,039	186,028	125,068	
Employee benefit liabilities and provisions	24	10,361	9,528	7,692	12,873	9,735	
Provision for other liabilities	25	9,002	11,546	10,890	9,002	10,890	
Total current liabilities	285,976	226,085	230,644	296,807	241,305	

Non-current liabilities						
Derivative financial liabilities	12	106,332	62,495	67,153	106,332	67,153	
Exchange transactions and transfers payable	21	231	–	231	231	231	
Borrowings	23	589,931	676,962	563,917	589,951	563,965	
Employee benefit liabilities and provisions	24	764	1,227	782	824	849	
Provision for other liabilities	25	52,154	32,129	48,209	52,154	48,209	
Deferred tax	26	–	–	–	308	1,014	
Total non-current liabilities	749,412	772,813	680,292	749,800	681,421	
Total liabilities	1,035,388	998,898	910,936	1,046,607	922,726	

Equity						
Accumulated funds	1,269,134	1,269,134	1,269,134	1,293,162	1,293,162	
Retained earnings	3,809,762	3,835,960	3,795,806	3,821,257	3,799,312	
Revaluation reserves	27	2,348,061	2,045,106	1,854,208	2,520,701	2,017,583	
Hedging reserve	28	(107,041)	(62,495)	(68,138)	(107,087)	(67,757)	
Fair value through other comprehensive revenue	29
and expense reserve	5,085	3,744	4,290	6,100	5,328	
Non-controlling interest	–	–	–	284	284	
Restricted funds	30	16,182	15,904	14,865	20,027	19,033	
Total equity	7,341,183	7,107,353	6,870,165	7,554,444	7,066,945	
Total equity and liabilities	8,376,571	8,106,251	7,781,101	8,601,051	7,989,671	

The notes from pages 199 to 299 form part of and should be read in conjunction with the financial statements	The notes from pages 199 to 299 form part of and should be read in conjunction with the financial statements

Statement of Financial Position – Major budget variations
Significant variations from budget are as follows:
Current assets are $33.225m higher than budgeted, major variances included:
$32.083m lower Cash and cash equivalents, largely due to $30.000m of investment deposits having terms longer than 3 months.
$40.886m higher Receivables and recoverables, partly due to the deferred payments for rates instalment 4
due 1 June 2020 ($2.182m), and other debtors due to the COVID-19 impact. In addition, there was also $33.000m insurance proceeds related to CAB recognised in 2019/20 plus a $2.438m delayed refund of GST which would normally be received in June but was not received until July 2020.
$31.488m higher Other financial assets, largely due to $30.000m of investment deposits having terms longer than 3 months.
$13.413m of lower prepayments due to delays in the issuing of invoices for the significant insurance policies normally paid in June.
$6.415m of Non-current assets classified as held for sale, which were not budgeted

Non-current assets are $237.095m higher than budget, major variances included:
$5.225m lower increase in Investment property revaluations
$243.210m net increase in Property, plant and equipment assets due to a $289.124m higher than budgeted revaluation offset by lower than planned capital expenditure and depreciation

Total liabilities are $36.490m higher than budget, major variances included:
$44.546m, relating to derivative financial liabilities which are not budgeted for.
$17.481m, relating to the provision for other liabilities due to timing differences and changes in discount rates for the Weathertight homes and Landfill provisions.
$27.031m of lower borrowings due to less than budgeted capital expenditure being completed.

Note 11:
Cash and cash equivalents

Table 17: Cash and cash equivalents

Cash at bank Cash on hand
Short term bank deposits up to 3 months	Council		Group		
	2020
$000

23,561
16
75,000	2019
$000

2,229
17
133,000	2020
$000

34,821
37
78,427	2019
$000

12,201
34
136,854	
Total cash and cash equivalents	98,577	135,246	113,285	149,089	
Bank balances that are interest bearing earn interest based on current floating bank deposit rates.
The high bank balance for 2020 reflects significant cash flows to occur immediately after balance date.
Council holds short term deposits as part of its overall liquidity risk management programme. This programme enables Council to maintain its regular commercial paper programme and to pre-fund upcoming debt maturities. The combination of the commercial paper programme and holding short term deposits reduces Council’s cost of funds.

Note 12:
Derivative financial instruments

Table 18: Derivative financial instruments

Liabilities
Current liabilities
Interest rate swaps – cash flow hedges	Council		Group		
	2020
$000

709	2019
$000

985	2020
$000

709	2019
$000

985	
Total current liabilities

Non-current liabilities
Interest rate swaps – cash flow hedges	709

106,332	985

67,153	709

106,332	985

67,153	
Total non-current liabilities	106,332	67,153	106,332	67,153	
Total derivative financial instrument liabilities	107,041	68,138	107,041	68,138	

Derivative financial instruments include interest rate swaps used to hedge exposure to interest rate risk on borrowings. Derivatives are initially recognised
at fair value, based on quoted market prices, and subsequently remeasured to fair value at the end of each reporting period. Fair value is determined by reference to quoted prices for similar instruments in active markets. Derivatives that do not qualify for hedge accounting are classified as non-hedged and fair value gains or losses are recognised within surplus or deficit.
Recognition of fair value gains or losses on derivatives that qualify for hedge accounting depends on the nature of the item being hedged. Where a derivative is used to hedge variability of cash flows (cash flow hedge), the effective part of any gain or loss is recognised within other comprehensive revenue and expense while the ineffective part is recognised within surplus or deficit. Gains or losses recognised in other comprehensive revenue and expense transfer to surplus or deficit in the same periods as when the hedged item affects the surplus or deficit.
As per the International Swap Dealers’ Association (ISDA) master agreements, all swap payments or receipts are settled net.

Relevant significant accounting policies

Derivative financial instruments are used by the Group in the normal course of business to hedge exposure to cash flow and fair value interest rate risk. The amounts
shown above represent the fair values of these derivative financial instruments. Although these are managed as a portfolio, the Group has no rights to offset assets and liabilities and must present these figures separately.
Interest rate swaps (Cash flow hedges) are used to fix interest rates on floating rate debt (floating rate notes or commercial paper). The swaps are held until maturity and have no cash impact or effect on the rates requirements.
For further information on the Council’s interest rate swaps please refer to Note 28: Hedging Reserve (page 268) and Note 32: Financial instruments (page 275).
COVID-19
The continued downward trend in interest rates has increased the negative value of the swap portfolio. This supports Council’s original decision to undertake hedge accounting, meaning that any valuation movements do not go through surplus or deficit, but remains within
a hedging reserve within equity until the swaps mature and the associated values moves to nil.

Note 13:
Receivables and recoverables

Table 19: Receivables and recoverables

Current
Non-Current	Council		Group		
	2020
$000

95,467
–	2019
$000

53,962
–	2020
$000

96,888
–	2019
$000

55,911
–	
Total receivables and recoverables – net	95,467	53,962	96,888	55,911	

Receivables and recoverables

Trade receivables and recoverables – debtors – net Trade recoverables – fines – net
Accrued revenue Sundry receivables GST recoverable
Rates recoverable	Council		Group		
	2020
$000

16,121
3,424
12,214
36,204
10,321
17,183	2019
$000

17,684
3,782
10,692
4,075
6,121
11,608	2020
$000

16,367
3,424
12,756
36,543
10,615
17,183	2019
$000

17,671
3,782
11,652
4,641
6,557
11,608	
Total receivables and recoverables – net	95,467	53,962	96,888	55,911	
Current trade, rates and sundry receivables and recoverables are non-interest bearing and receipt is generally on 30-day terms, therefore the carrying value approximates their fair value. The increase in Sundry receivables largely relates to the $33.000m insurance settlement. For more information refer to Note 38: Events after the end of the reporting period (page 299).

Table 20: Receivables and recoverables from related parties
Receivables and recoverables from related parties
Controlled entities
Associates and jointly controlled entity	Council		Group		
	2020
$000

394
359	2019
$000

1,113
212	2020
$000

– 359	2019
$000

– 212	
Total receivables and recoverables from related parties	753	1,325	359	212	

Table 21: Provision for impairment of total receivables and recoverables

Opening balance New provisions made
Release of unused provision
Amount of provision utilised	Council		Group		
	2020
$000

6,838
345
(145)
(39)	2019
$000

6,952
497
(565)
(46)	2020
$000

6,838
374
(145)
(39)	2019
$000

6,952
497
(565)
(46)	
Provision for impairment of total receivables and recoverables – closing balance	6,999	6,838	7,028	6,838	

The movement in the provision for impairment of total receivables and recoverables is analysed as follows in Table 21.

Table 22: Debt aging profile	2020	2019	
Council	Gross
$000	Impaired
$000	Net
$000	Gross
$000	Impaired
$000	Net
$000	
Trade and other receivables and recoverables							
Not past due	70,964	(69)	70,895	35,504	(223)	35,281	
Past due 0–3 months	11,012	(52)	10,960	7,219	(62)	7,157	
Past due 3–6 months	6,091	(308)	5,783	4,312	(250)	4,062	
Past due more than 6 months	14,399	(6,570)	7,829	13,765	(6,303)	7,462	
Total receivables and recoverables	102,466	(6,999)	95,467	60,800	(6,838)	53,962	

The ageing profile of total net receivables and recoverables at the reporting date is as follows in Table 22.

Note 14:

Table 23: Other financial assets

Represented by:
Current
Non-current	Council		Group		
	2020
$000

31,488
16,131	2019
$000

9,320
14,844	2020
$000

33,488
17,976	2019
$000

10,570
16,983	
Total other financial assets	47,619	24,164	51,464	27,553	

Comprised of:
Equity investments:
Civic Financial Services Ltd
NZ Local Government Funding Agency (LGFA) Creative HQ shareholdings
Legacy investment – Wellington Museums Trust

Deposits and loans
Bank deposits – term greater than 3 months LGFA – borrower notes
Loans to related parties
Loans to external organisations	

490
6,938
–
–

30,000
10,152
39
–	

477
6,156
–
–

9,000
8,496
35
–	

490
6,938
1,570
260

32,000
10,152
39
15	

477
6,156
1,864
252

10,250
8,496
35
23	
Total other financial assets	47,619	24,164	51,464	27,553	

Other financial assets

Group	2020	2019	
	Gross	Impaired	Net	Gross	Impaired	Net	
	$000	$000	$000	$000	$000	$000	
Trade and other receivables and recoverables							
Not past due	72,277	(69)	72,208	37,248	(223)	37,025	
Past due 0–3 months	11,121	(72)	11,049	7,407	(62)	7,345	
Past due 3–6 months	6,112	(317)	5,795	4,328	(250)	4,078	
Past due more than 6 months	14,406	(6,570)	7,836	13,766	(6,303)	7,463	
Total receivables and recoverables	103,916	(7,028)	96,888	62,749	(6,838)	55,911	

The net receivables and recoverables past due for more than six months primarily relates to fines. Due to their nature, the collection pattern for fines is longer than for trade debtors.

Relevant significant accounting policies

Receivables from exchange transactions
Receivables from exchange transactions arise when the Council is owed by another entity or individual for goods or services provided directly by Council and will receive approximately equal value in a willing arm’s length transaction (primarily in the form of cash in exchange). Examples of exchange transactions include parking services and metered water rates.
Recoverables from non-exchange transactions
Recoverables from non-exchange transactions arise when the Council is owed value from another party without giving approximately equal value directly in exchange
for the value received. Most of the goods or services that Council provide are subsidised by rates revenue and therefore the exchange is unequal.

COVID-19
The deferment of certain qualifying rates payments for instalment 4, due 1 June 2020, and the late billing for some metered water rates due to the delayed reading of meters, as a result of lockdown restrictions, contributed to higher rates debt outstanding at the end of the 2019/20 period.

Examples of non-exchange transactions include social housing rentals, parking fines and recreational centre activities. Non-exchange transactions are comprised of either taxes or transfers. Transfers also include grants that do not have specific conditions attached which require return of the grant for non-performance.
An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extent that a liability is also recognised in respect of the same inflow. As Council satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non-exchange transaction recognised
as an asset, it reduces the carrying amount of the liability recognised and recognises an amount of revenue equal to that reduction.

Equity investments
Civic Financial Services Limited is the trading name for
the New Zealand Local Government Insurance Corporation Limited. The Council holds a 4.78 percent (2019: 4.78 percent) shareholding in this entity and has no present intention to sell.
The New Zealand Local Government Funding Agency Limited (LGFA), is an alternative debt provider majority owned by and operated for local authorities. The Council

holds an 8 percent shareholding of the paid-up capital and as a shareholder will benefit from a return on its investment and as a borrower from lower borrowing costs. Refer to Note 36: Related party disclosures, for more information (page 288).
Creative HQ, a controlled entity of Wellington Regional Economic Development Agency Limited (WREDA), has small shareholdings in various incubator and accelerator programme companies. These shares are held until the companies mature or cease operations.

Deposits and loans
Bank deposits
Bank term deposits with maturities greater than 3 months are categorised as investments. These longer-term deposits are largely due to the early borrowing (pre- funding) for future debt repayments and mature
in less than 12 months.
Borrower notes

Table 24: Loans

Loans to related parties
Wellington Regional Stadium Trust (nominal value $15,394,893) Opening balance
Amortisation of fair value adjustment	Council		Group		
	2020
$000

35
4	2019
$000

31
4	2020
$000

35
4	2019
$000

31
4	
Closing balance at fair value	39	35	39	35	

Loans to other external organisations
Opening balance
Loan repayments received Amortisation of fair value adjustment	

–
–
–	

244
(244)
–	

23
(15)
7	

276
(259)
6	
Closing balance at fair value	–	–	15	23	
Total loans	39	35	54	58	

As part of the borrowing arrangements through the LGFA, Council is required to leave 1.6 percent of any debt drawdown with the LGFA, as an investment, in the form of a borrower note. Borrower notes are subordinated

The fair value movement on loans reflects the timing of their expected repayments and the interest free or other nature of the loan. Over the remaining life of the loans their fair value will be amortised back up to their full nominal value.
Wellington Regional Stadium Trust
Council holds a $15m limited recourse loan to WRST, which is unsecured, with no specified maturity and at no interest. The loan is not repayable until all other debts are extinguished
The amortisation rate applicable to the WRST loan is 12.710 percent.

convertible debt instruments, which will be repaid with interest to Council, once the related borrowing is repaid or no longer owed to the LGFA. The maturity profile of these notes matches the related debt maturity profile (August 2020 to April 2033).
Loans to related parties
The loans to related parties are concessionary in nature, since the loans have been granted on interest free terms. The movements in the loans are shown in Table 24.

On maturity of the initial WRST membership underwrite, the unpaid interest was converted to a $0.395m advance repayable after all other advances made by the Council and Greater Wellington Regional Council. The current expected repayment of the loan and the advance back to the Council, as advised by WRST, is in 2070.
COVID-19
A new joint loan facility between Council and Greater Wellington Regional Council is now available to WRST. For further information in regard to this loan facility refer to Note 34: Contingencies (page 285).

Note 15:
Non-current assets classified as held for sale

Table 25: Non-current assets	Council		Group		
classified as held for sale					
	2020
$000	2019
$000	2020
$000	2019
$000	

Opening balance	
19,744	
–	
19,744	
–	
Movement of PP&E non-current assets held for sale	(17,429)	19,744	(17,429)	19,744	
Transfers from Investment Properties	4,100	–	4,100	–	
Total non-current assets classified as held for sale	6,415	19,744	6,415	19,744	

Non-current assets held for sale are valued at the lower of the carrying amount and fair value less costs to sell at the time of reclassification.
Non-current assets held for sale are separately classified as their carrying amount will be recovered through a sale transaction rather than through continuing use. A non-current asset is classified as held for sale where:
the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets;
a plan to sell the asset is in place and an active programme to locate a buyer has been initiated;
the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value;
the sale is expected to occur within one year or beyond one year where a delay has occurred which is caused by events beyond the Group’s control and there is sufficient evidence the Group remains committed to sell the asset; and
actions required to complete the sale indicate it
is unlikely that significant changes to the plan will be made or the plan will be withdrawn.
A non-current asset classified as held for sale is recognised at the lower of its carrying amount or fair value less costs to sell. Impairment losses on initial classification are included within surplus or deficit.

Relevant significant accounting policies

The additions to non-current assets classified as held for sale in 2018/19 were related to the Arlington sites 1 and 3 that were subject to a signed long-term lease to Kāinga Ora (formerly Housing New Zealand) going unconditional in the 2019/20 period. This unconditional status was achieved in March 2020 and for accounting purposes this transaction is treated as a sale.
The significant addition to the classification is Site 9, part of the Kumutoto area, which is expected to be effectively sold for redevelopment in late 2020. Other properties still unsold or expected to sell within the next 12 months are either as a result of road stopping or housing stock that will be re-invested in better suited social housing developments.
Subsequent to 30 June 2020, as part of the Portfolio Alignment Strategy, a workstream of the Strategic Housing Investment Plan (SHIP), Council will consider the divestment of 20 City Housing properties that are surplus to operational requirements. The proceeds from the sale
of these underperforming properties will go towards the SHIP development programme.

Note 16:
Intangibles

Table 26: Intangibles

Computer software
Cost – opening balance Accumulated amortisation	Council		Group		
	2020
$000

59,825
(42,260)	2019
$000

59,625
(38,534)	2020
$000

60,753
(42,934)	2019
$000

60,808
(39,595)	
Computer software opening balance Acquired by direct purchase Amortisation
Net disposals	17,565
4,253
(3,552)
–	21,091
203
(3,729)
–	17,819
4,307
(3,680)
(66)	21,213
444
(3,838)
–	
Total computer software – closing balance	18,266	17,565	18,380	17,819	

Cost
Accumulated amortisation	
64,079
(45,813)	
59,825
(42,260)	
64,826
(46,446)	
60,753
(42,934)	
Total computer software – closing balance	18,266	17,565	18,380	17,819	

Work in progress
Computer software	

2,149	

3,543	

2,149	

3,543	
Total work in progress	2,149	3,543	2,149	3,543	

Carbon credits
Cost – Opening Balance Additions
Net disposals	

4,096
2,970
(1,767)	

2,864
1,490
(258)	

4,096
2,970
(1,767)	

2,864
1,490
(258)	
Total Carbon credits – closing balance	5,299	4,096	5,299	4,096	
Total intangibles	25,714	25,204	25,828	25,458	
Disposals and transfers are reported net of accumulated amortisation.

Carbon credits
As part of the Emissions Trading Scheme (ETS) the Council receives carbon credits from Central Government in recognition of the carbon absorbed by a portion of the Council’s green belt. For the year ending 30 June 2020 the Council received 28,367 units (2019: 986).
The Council purchased 62,103 units (2019: 41,800) in the market to cover the expected liabilities associated with landfill operations. While the fixed price payment method was used to meet the Council’s ETS obligations for the 2018 calendar year, the Council reverted to the usual method with 85,000 units surrendered in 2020
(2019: Nil) for the 2019 calendar year liability.

Table 27: Carbon credits

Opening balance
Additions – Allocated from the Crown Additions – Purchases
Disposals – Surrendered to the Crown Disposals – Repayments to the Crown
Disposals – Sales	Council		Group		
	2020
Units

394,360
28,367
78,103
(85,000)
– (27,000)	2019
Units

382,017
986
58,800
– (40,543)
(6,900)	2020
Units

394,360
28,367
78,103
(85,000)
– (27,000)	2019
Units

382,017
986
58,800
– (40,543)
(6,900)	
Total carbon credits	388,830	394,360	388,830	394,360	

A further 16,000 units (2019: 17,000) were purchased to offset sales made to Air New Zealand for them to offer as credits to offset their passenger air miles.

Relevant significant accounting policies

Computer software
Acquired computer software is measured on initial recognition at the costs to acquire and bring to use and subsequently less any amortisation and impairment losses.
Typically, the estimated useful life of these assets is between 2 to 11 years.
Carbon Credits
Carbon credits comprise either allocations of emission allowances granted by the Government related to forestry assets or units purchased in the market to cover liabilities associated with landfill operations.
Carbon credits allocated as a non-exchange transaction

Due to previously over-estimated carbon forest estimates, which are performed 5-yearly, Council was required to repay 40,543 units to the Crown in the 2018/19 year.
During the period ending 30 June 2020, 27,000 units were sold to Air New Zealand.
At 30 June 2020 the total liability relating to landfill carbon emissions is $1.234m (2019: $0.928m).
More information on carbon credits can be found in the Statements of Service Provision under activity 2.2: Waste reduction and energy conservation (page 43).
The movement in units held is as shown in Table 27.

are initially recognised at fair value, which then becomes the deemed cost. Carbon credits that are purchased are recognised at cost.
Gains and losses arising from disposal of intangible assets are recognised within surplus or deficit in the period in which the transaction occurs. Intangible assets are reviewed at least annually to determine if there is any indication of impairment. Where an intangible asset’s recoverable amount is less than its carrying amount, it will be reported at its recoverable amount and an impairment loss will be recognised. Losses resulting from impairment are reported within surplus or deficit.

Note 17:
Investment properties

Note 18:
Property, plant and equipment

Table 28: Investment properties

Ground leases, other land and buildings
Opening balance Additions by acquisition Disposals
Adjustment
Fair value revaluation movements taken to surplus/(deficit) Transfer to non-current assets classified as held for sale	Council		Group		
	2020
$000

255,012
–
– 42
7,558
(4,100)	2019
$000

236,485
73
–
– 18,454
–	2020
$000

255,012
–
– 42
7,558
(4,100)	2019
$000

236,485
73
–
– 18,454
–	
Total ground leases, other land and buildings	258,512	255,012	258,512	255,012	

Work in progress
Other land and buildings	

3	

466	

3	

466	
Total work in progress	3	466	3	466	
Total investment properties	258,515	255,478	258,515	255,478	

 	
Table 29: Summary of property,	Council		Group		
plant and equipment					
	2020
$000	2019
$000	2020
$000	2019
$000	

Property, plant and equipment – Opening balance	
7,223,566	
7,226,974	
7,239,892	
7,242,418	
Additions	171,433	198,241	172,054	200,251	
Disposals	(14,605)	(4,562)	(14,644)	(4,835)	
Depreciation expense	(114,515)	(112,392)	(115,983)	(113,781)	
Impairment losses	(11,371)	(50,603)	(11,371)	(50,603)	
Revaluation adjustment	(7,643)	–	(7,643)	–	
Revaluation movement	501,623	–	501,623	–	
Movement of non-current assets held for sale	17,429	(19,744)	17,429	(19,744)	
Movement of work in progress	43,977	(14,348)	44,420	(13,814)	
Total property, plant and equipment	7,809,894	7,223,566	7,825,777	7,239,892	

The basis of valuation varies depending on the nature of the lease. For sites that are subject to a terminating lease the approach is to assess the value of the lease revenue over the remaining term of the lease and add the residual value of the land at lease expiry.
For sites subject to perpetually renewable leases values have been assessed utilising a discounted cash flow and arriving at a net present value of all future anticipated gross lease payments.
Borrowing costs incurred during the construction of investment property are not capitalised.
Investment properties are measured initially at cost and subsequently measured at fair value, determined annually by an independent registered valuer. Any gain or loss arising is recognised within surplus or deficit.
Investment properties are not depreciated.
Certain ground leases on the waterfront and within the CBD have, for accounting purposes, been treated as sold assets due to the very long-term nature of the lease and peppercorn rentals.
At a future point in time, prior to the asset being returned to Council ownership, Council will begin to incrementally re-recognise the value of the asset. The amortisation of the estimated future value will reflect the prevalent economic situation and will be more relevant in terms of both the estimated value and materiality.

Relevant significant accounting policies

Wellington City Council’s investment properties including the waterfront investment properties were valued as at 30 June 2020 by an independent valuer, William Bunt
(FNZIV, FPINZ), registered valuer and Director of Valuation Services for CBRE Limited.
The Council’s total investment properties comprise ground leases of $213.757m (2019: $209.122m) and land and buildings (including work in progress) of $44.758m (2019: $46.356m) held for investment purposes.
Investment properties are properties which are held primarily to earn lease revenue and/or for capital growth. These properties include the Council’s ground leases and certain land and buildings.
Ground leases are parcels of land owned by the Council in the central city or on the waterfront that are leased to other parties who own the buildings situated on the land. The leases are generally based on 21-year perpetually renewable terms. As these parcels of land are held for investment purposes the leases are charged on a commercial market basis.
Investment properties exclude those properties held for strategic purposes or to provide a social service. This includes properties which generate cash inflows as the lease revenue is incidental to the purpose for holding the property. Such properties include the Council’s social housing assets, which are held within operational assets in property, plant and equipment.

Property, plant and equipment consists of operational assets, restricted assets and infrastructure assets.

Relevant significant accounting policies

Operational assets include land, the landfill post- closure asset, buildings, the Civic Precinct, the library collection, and plant and equipment.
Restricted assets include art and cultural assets, zoo animals, restricted buildings, parks and reserves and the Town Belt. These assets provide a benefit or service to the community and in most cases cannot be disposed of because of legal or other restrictions (for example, land declared as a reserve under the Reserves Act 1977.) The use of the asset may also be restricted such as the donated Basin Reserve land which must be retained for the purposes of providing a cricket and recreation ground with no permitted thoroughfare.
Infrastructure assets include the  roading  network, water, waste and drainage reticulation networks, service concession arrangement assets and infrastructure land (including land under roads). Each asset type includes all items that are required for the network to function.
Vested assets are those assets where ownership and control is transferred to the Council from a third party (eg. infrastructure assets constructed by developers and transferred to the Council on completion of a subdivision). Vested assets are recognised within
their respective asset classes as above.
Heritage assets are tangible assets with historical, artistic, scientific, technological, geophysical or environmental qualities that are held and maintained principally for their contribution to knowledge and

culture. The Council and Group recognises these assets within these financial statements to the extent their value can be reliably measured.
Recognition
Expenditure is capitalised as property, plant and equipment when it creates a new asset or increases the economic benefits of an existing asset. Costs that do not meet the criteria for capitalisation are expensed.
Measurement
Property, plant and equipment is recognised initially at cost, unless acquired for nil or nominal cost (eg. vested assets), in which case the asset is recognised at fair value at the date of transfer. The initial cost of property, plant and equipment includes the purchase consideration
(or the fair value in the case of vested assets), and those costs that are directly attributable to bringing the asset into the location and condition necessary for its intended purpose. Subsequent expenditure that extends or expands the asset’s service potential is capitalised.
Borrowing costs incurred during the construction of property, plant and equipment are not capitalised.
After initial recognition, certain classes of property, plant and equipment are revalued to fair value. Where there is no active market for an asset, fair value is determined by optimised depreciated replacement cost.
Optimised depreciated replacement cost is a valuation methodology where the value of an asset is based on the cost of replacement with an efficient modern

Relevant significant accounting policies continued

equivalent making allowance for obsolesce or surplus capacity. The remaining life is of the asset is estimated and straight-line depreciation applied to bring the replacement cost to a fair value.
Specific measurement policies for categories of property, plant and equipment are shown below:
Library Collections
Library collections are valued at depreciated replacement cost on a three-year cycle by the Council’s library staff in accordance with guidelines outlined in Valuation Guidance for Cultural and Heritage Assets, published by the Treasury Accounting Team, November 2002.
Operational Land & Buildings
Operational land and buildings are valued at fair value on a regular basis or, whenever the carrying amount
differs materially to fair value, by independent registered valuers. Where the information is available, land and buildings are valued based on market evidence. The majority of Councils land and buildings are of a ‘non- tradeable’ or specialist nature and the value is based
on the fair value of the land plus the optimised depreciated replacement cost of the buildings.
For earthquake prone buildings that are expected to be strengthened, the estimated cost to strengthen the building has been deducted from the optimised depreciated replacement cost.
Buildings that comprise the Social Housing portfolio have been valued on market-based approach with the associated land value being established through analysis of sales and market evidence.
Restricted assets
Art and cultural assets (artworks, sculptures and statues) are valued at historical cost. Zoo animals are stated at estimated replacement cost. All other restricted assets (buildings, parks and reserves and the Town Belt) were valued at fair value as at 30 June 2005 by an independent registered valuer. The Council has elected to use the
fair value of other restricted assets at 30 June 2005 as the deemed cost of the assets. These assets are no longer revalued. Subsequent additions have been recorded at cost.
Infrastructure assets
Infrastructure assets (the  roading  network,  water, waste and drainage reticulation networks including service concession arrangement assets (waste water treatment plants)) are valued at optimised depreciated replacement cost on a regular basis or, whenever the carrying amount differs materially to fair value, by an independent registered valuer. Infrastructure valuations are based on the physical attributes of the assets, their

condition and their remaining lives based on Council’s best information reflected in its asset management plans. The costs are based on current quotes from actual suppliers. As such, they include ancillary costs such as breaking through seal, traffic control and rehabilitation. Between valuations, expenditure on asset improvements is capitalised at cost.

impairment. Where an asset’s, or class of assets’, recoverable service amount is less than its carrying amount it will be reported at its recoverable service amount and an impairment loss will be recognised.
The recoverable service amount is the higher of an item’s fair value less costs to sell and value in use. A non-cash generating asset’s value in use is the present value of the asset’s remaining service potential. Losses resulting from impairment are reported within surplus or deficit, unless the asset is carried at a revalued amount in which case any impairment loss is treated as a revaluation decrease and recorded within other comprehensive revenue and expense.
Disposal
Gains and losses arising from the disposal of property, plant and equipment are recognised within surplus or deficit in the period in which the transaction occurs. Any balance attributable to the disposed asset in the asset revaluation reserve is transferred to retained earnings.
Work in progress
Work in progress represents the cost of capital expenditure projects that are not financially complete. The cost of projects within work in progress is transferred to the relevant asset class when the project is completed and is then subject to depreciation.

Relevant significant accounting policies continued

Infrastructure land (excluding land under roads) is valued on a regular basis or, whenever the carrying amount differs materially to fair value, by an independent registered valuer.
Land under roads, which represents the corridor of
land directly under and adjacent to the Council’s roading network, was valued as at 30 June 2005 at the average value of surrounding adjacent land discounted by 50 percent to reflect its restricted nature. The Council elected to use the fair value of land under roads at 30 June 2005 as the deemed cost of the asset. Land under roads is
no longer revalued. Subsequent additions have been recorded at cost.
The carrying values of revalued property, plant and equipment are reviewed at the end of each reporting period to ensure that those values are not materially different to fair value.
Other Assets
Plant and equipment and the Civic Precinct are measured at historical cost and not revalued.
Impairment
The Council’s assets are defined as cash generating if the primary purpose of the asset is to provide a commercial return. Non-cash generating assets are assets other than cash generating assets. Property, plant and equipment assets, measured at fair value, are not required to be reviewed and tested for impairment.
The carrying amounts of cash generating property,
plant and equipment assets are reviewed at least annually to determine if there is any indication of impairment.
Where an asset’s, or class of assets’, recoverable amount is less than its carrying amount it will be reported at its recoverable amount and an impairment loss will be recognised. The recoverable amount is the higher of an item’s fair value less costs to sell and value in use. Losses resulting from impairment are reported within surplus or deficit, unless the asset is carried at a revalued amount in which case any impairment loss is treated as a revaluation decrease and recorded within other comprehensive revenue and expense.
The carrying amounts of non-cash generating property, plant and equipment assets are reviewed at least annually to determine if there is any indication of

The movements according to the individual classes of assets are as follows in Table 30.

Table 30: Property, plant and	Council		Group		
equipment by class of asset					
	2020
$000	2019
$000	2020
$000	2019
$000	
Operational assets					
Land					
Land – at cost – opening balance	259	–	259	–	
Land – at valuation – opening balance	279,611	293,414	279,611	293,414	
Total land – opening balance	279,870	293,414	279,870	293,414	
Additions	1,946	259	1,946	259	
Disposals	(12,820)	–	(12,820)	–	
Transfer between asset classes	5,315	–	5,315	–	
Movements of non-current assets held for sale	12,495	(13,803)	12,495	(13,803)	
Total land – closing balance	286,806	279,870	286,806	279,870	
Land – at cost – closing balance	2,205	259	2,205	259	
Land – at valuation – closing balance	284,601	279,611	284,601	279,611	
Total land – closing balance	286,806	279,870	286,806	279,870	

Buildings					
Buildings – at cost – opening balance	58,390	–	58,390	–	
Buildings – at valuation – opening balance	739,656	746,623	749,010	754,983	
Total cost/valuation	798,046	746,623	807,400	754,983	
Accumulated depreciation	(31,145)	–	(36,097)	(4,235)	
Total buildings – opening balance	766,901	746,623	771,303	750,748	
Additions	45,910	58,390	45,920	58,829	
Depreciation expense	(29,967)	(30,938)	(30,135)	(31,091)	
Disposals	(872)	(3,697)	(880)	(3,706)	
Impairment	(3,308)	(53)	(3,308)	(53)	
Revaluation adjustment	(7,643)	–	(7,643)	–	
Transfer between asset classes	(152,456)	1,545	(152,456)	1,545	
Movements of non-current assets held for sale	4,312	(4,969)	4,312	(4,969)	
Total buildings – closing balance	622,877	766,901	627,113	771,303	
Buildings – at cost – closing balance	104,300	58,390	104,300	58,390	
Buildings – at valuation – closing balance	609,081	739,656	618,430	749,010	
Total cost/valuation	713,381	798,046	722,730	807,400	
Accumulated depreciation	(90,504)	(31,145)	(95,617)	(36,097)	
Total buildings – closing balance	622,877	766,901	627,113	771,303	

 	
	Council		Group		
	2020	2019	2020	2019	
	$000	$000	$000	$000	
Landfill post closure costs1					
Landfill post closure – at cost – opening balance	8,017	4,174	8,017	4,174	
Accumulated depreciation	(3,009)	(2,997)	(3,009)	(2,997)	
Total landfill post closure costs – opening balance	5,008	1,177	5,008	1,177	
Depreciation expense	(272)	(12)	(272)	(12)	
Movement in post closure costs	(1,403)	3,843	(1,403)	3,843	
Total landfill post closure costs – closing balance	3,333	5,008	3,333	5,008	
Landfill post closure – at cost – closing balance	6,613	8,017	6,613	8,017	
Accumulated depreciation	(3,280)	(3,009)	(3,280)	(3,009)	
Total landfill post closure costs – closing balance	3,333	5,008	3,333	5,008	

Civic Precinct					
Civic Precinct – at cost – opening balance	167,043	163,833	167,043	163,833	
Accumulated depreciation	(119,778)	(66,524)	(119,778)	(66,524)	
Total Civic Precinct – opening balance	47,265	97,309	47,265	97,309	
Additions	13,259	3,210	13,259	3,210	
Depreciation expense	(1,411)	(2,732)	(1,411)	(2,732)	
Impairment	(8,027)	(50,522)	(8,027)	(50,522)	
Total Civic Precinct – closing balance	51,086	47,265	51,086	47,265	
Civic Precinct – at cost – closing balance	180,303	167,043	180,303	167,043	
Accumulated depreciation and impairment	(129,217)	(119,778)	(129,217)	(119,778)	
Total Civic Precinct – closing balance	51,086	47,265	51,086	47,265	

Plant and equipment					
Plant and equipment – at cost – opening balance	194,261	175,029	214,846	192,696	
Accumulated depreciation	(110,545)	(101,311)	(122,305)	(112,824)	
Total plant and equipment – opening balance	83,716	73,718	92,541	79,872	
Additions	22,918	21,620	23,529	23,191	
Depreciation expense	(11,445)	(9,909)	(12,745)	(11,145)	
Disposals	(396)	(303)	(427)	(567)	
Impairment	(32)	(28)	(32)	(28)	
Transfer between asset classes	7,871	(1,382)	7,871	1,218	
Total plant and equipment – closing balance	102,632	83,716	110,737	92,541	
Plant and equipment – at cost	217,730	194,261	237,613	214,846	
Accumulated depreciation	(115,098)	(110,545)	(126,876)	(122,305)	
Total plant and equipment – closing balance	102,632	83,716	110,737	92,541	

Disposals and transfers are reported net of accumulated depreciation

The Council’s share of the joint venture with Porirua City Council relating to the Spicer Valley landfill is included in this asset class. Disposals and transfers are reported net of accumulated depreciation

Table 30: Property, plant and	Council		Group		
equipment by class of asset continued					
	2020
$000	2019
$000	2020
$000	2019
$000	
Library collections					
Library collections – at cost – opening balance	4,709	2,629	4,709	2,629	
Library collections – at valuation – opening balance	14,841	14,841	14,841	14,841	
Total cost/valuation	19,550	17,470	19,550	17,470	
Accumulated depreciation	(3,909)	(1,767)	(3,909)	(1,767)	
Total library collections – opening balance	15,641	15,703	15,641	15,703	
Additions	1,689	2,080	1,689	2,080	
Depreciation expense	(2,387)	(2,142)	(2,387)	(2,142)	
Revaluation movement	200	–	200	–	
Total library collections – closing balance	15,143	15,641	15,143	15,641	
Library collections – at cost – closing balance	–	4,709	–	4,709	
Library collections – at valuation – closing balance	15,143	14,841	15,143	14,841	
Total cost/valuation	15,143	19,550	15,143	19,550	
Accumulated depreciation	–	(3,909)	–	(3,909)	
Total library collections – closing balance	15,143	15,641	15,143	15,641	
					
Total operational assets	1,081,877	1,198,401	1,094,218	1,211,628	

Infrastructure assets					
Drainage, waste and water					
Drainage, waste and water – at cost – opening balance	62,502	16,748	62,502	16,748	
Drainage, waste and water – at valuation – opening balance	2,973,091	2,973,091	2,973,091	2,973,091	
Total cost/valuation	3,035,593	2,989,839	3,035,593	2,989,839	
Accumulated depreciation	(1,574,931)	(1,539,435)	(1,574,931)	(1,539,435)	
Total drainage, water and waste – opening balance	1,460,662	1,450,404	1,460,662	1,450,404	
Additions	30,521	45,754	30,521	45,754	
Depreciation expense	(36,227)	(35,512)	(36,227)	(35,512)	
Revaluation movement	404,633	–	404,633	–	
Transfer between asset classes	4,209	16	4,209	16	
Total drainage, water and waste – closing balance	1,863,798	1,460,662	1,863,798	1,460,662	
Drainage, waste and water – at cost – closing balance	–	62,502	–	62,502	
Drainage, waste and water – at valuation – closing balance	3,947,514	2,973,091	3,947,514	2,973,091	
Total cost/valuation	3,947,514	3,035,593	3,947,514	3,035,593	
Accumulated depreciation	(2,083,716)	(1,574,931)	(2,083,716)	(1,574,931)	
Total drainage, water and waste – closing balance	1,863,798	1,460,662	1,863,798	1,460,662	

 	
	Council		Group		
	2020	2019	2020	2019	
	$000	$000	$000	$000	
Roading					
Roading – at cost – opening balance	93,648	33,365	93,648	33,365	
Roading – at valuation – opening balance	1,451,232	1,452,141	1,451,232	1,454,741	
Total cost/valuation	1,544,880	1,485,506	1,544,880	1,488,106	
Accumulated depreciation	(495,053)	(465,735)	(495,053)	(465,735)	
Total roading – opening balance	1,049,827	1,019,771	1,049,827	1,022,371	
Additions	52,826	60,283	52,826	60,283	
Depreciation expense	(31,156)	(29,569)	(31,156)	(29,569)	
Disposals	–	(479)	–	(479)	
Revaluation movement	90,846	–	90,846	–	
Transfer between asset classes	135,567	(179)	135,567	(2,779)	
Total roading – closing balance	1,297,910	1,049,827	1,297,910	1,049,827	
Roading – at cost – closing balance	–	93,648	–	93,648	
Roading – at valuation – closing balance	1,915,727	1,451,232	1,915,727	1,451,232	
Total cost/valuation	1,915,727	1,544,880	1,915,727	1,544,880	
Accumulated depreciation	(617,817)	(495,053)	(617,817)	(495,053)	
Total roading – closing balance	1,297,910	1,049,827	1,297,910	1,049,827	

Infrastructure land					
Infrastructure land – at cost – opening balance	–	–	–	–	
Infrastructure land – at valuation – opening balance	38,529	39,256	38,529	39,256	
Total infrastructure land – opening balance	38,529	39,256	38,529	39,256	
Additions	20	–	20	–	
Disposals	(350)	–	(350)	–	
Revaluation movement	5,944	–	5,944	–	
Transfer between asset classes	(459)	–	(459)	–	
Movements of non-current assets held for sale	639	(727)	639	(727)	
Total infrastructure land – closing balance	44,323	38,529	44,323	38,529	
Infrastructure land – at cost – closing balance	–	–	–	–	
Infrastructure land – at valuation – closing balance	44,323	38,529	44,323	38,529	
Total infrastructure land – closing balance	44,323	38,529	44,323	38,529	

Land under roads					
Land under roads – at cost – opening balance	2,955,616	2,955,803	2,955,616	2,955,803	
Additions	–	87	–	87	
Disposals	(91)	(83)	(91)	(83)	
Transfer between asset classes	(1)	–	(1)	–	
Movements of non-current assets held for sale	(29)	(191)	(29)	(191)	
Land under roads – closing balance	2,955,495	2,955,616	2,955,495	2,955,616	
					
Total infrastructure assets	6,161,526	5,504,634	6,161,526	5,504,634	

Disposals and transfers are reported net of accumulated depreciation	Disposals and transfers are reported net of accumulated depreciation

Table 30: Property, plant and	Council		Group		
equipment by class of asset continued					
	2020
$000	2019
$000	2020
$000	2019
$000	
Restricted assets2					
Art and cultural assets					
Art and cultural assets – at cost – opening balance	8,893	8,872	11,232	11,211	
Additions	–	21	–	21	
Transfer between asset classes	(21)	–	(21)	–	
Art and cultural assets – closing balance	8,872	8,893	11,211	11,232	

Buildings on restricted land					
Buildings on restricted land – at cost – opening balance	42,292	42,198	42,292	42,198	
Accumulated depreciation	(15,226)	(13,648)	(15,226)	(13,648)	
Total buildings on restricted land – opening balance	27,066	28,550	27,066	28,550	
Additions	3,748	94	3,748	94	
Depreciation expense	(1,650)	(1,578)	(1,650)	(1,578)	
Disposals	(55)	–	(55)	–	
Impairment	(4)	–	(4)	–	
Transfer between asset classes	(25)	–	(25)	–	
Total buildings on restricted land – closing balance	29,080	27,066	29,080	27,066	
Buildings on restricted land – at cost – closing balance	45,465	42,292	45,465	42,292	
Accumulated depreciation	(16,385)	(15,226)	(16,385)	(15,226)	
Total buildings on restricted land – closing balance	29,080	27,066	29,080	27,066	

Parks and reserves					
Parks and reserves – at cost – opening balance	213,219	210,673	213,219	210,673	
Additions	–	2,600	–	2,600	
Disposals	(21)	–	(21)	–	
Movements of non-current assets held for sale	12	(54)	12	(54)	
Parks and reserves – closing balance	213,210	213,219	213,210	213,219	
					
Town Belt – at cost	89,232	89,232	89,232	89,232	
					
Zoo animals – at cost	500	500	500	500	
					
Total restricted assets	340,894	338,910	343,233	341,249	
Work in progress	225,597	181,621	226,800	182,381	
Total property, plant and equipment	7,809,894	7,223,566	7,825,777	7,239,892	

Revaluation of property, plant and equipment The Council’s operational land and buildings were valued as at 30 June 2018, and infrastructural land as at 30 June 2020 by William Bunt (FNZIV, FPINZI), registered valuer and Director of Valuation Services for CBRE Limited.
Library collections were valued as at 30 June 2020 by the Council’s library staff. The revaluation was carried out in accordance with guidelines outlined in Valuation Guidance for Cultural and Heritage Assets published by the Treasury Accounting Team, November 2002.
The drainage, waste and water infrastructure and roading networks and the service concession assets were valued with effect from 30 June 2020 by John Vessey (MIPENZ), Partner of WSP New Zealand Limited.
The valuation reports for the revaluations performed as at 30 June 2020 for investment properties and infrastructural assets contain statements around
the risks relating to COVID-19. While the immediate impact of COVID-19 on both the real estate market and construction costs appears to have been limited,
the longer-term impact is unknown which has resulted in heightened uncertainty within the valuations.
Assets are valued at regular intervals by an independent registered valuer or whenever the carrying amount differs materially to fair value. In the years which an asset class is not revalued, the Group assesses whether there has been any material change in the value of that asset class. The movement in asset values between
30 June 2018 and 30 June 2020 for operational land and building assets were assessed using appropriate indices. The increase in asset value of 1.5 percent of total property, plant and equipment assets was not considered material by management and accordingly the assets were not revalued for 30 June 2020.
Further information on revaluation reserves and movements is contained in Note 27: Revaluation reserves (page 266).
Significant acquisitions and replacements of assets
In accordance with the provisions of Schedule 10 of the Local Government Act 2002, information in respect of significant acquisitions and replacements of assets is reported within the Statements of Service Provision.

For restricted assets, valuation at cost means they are not subject to revaluation. Please refer to the relevant significant accounting policies above for a more detailed explanation.

Disposals and transfers are reported net of accumulated depreciation

Core Assets

Table 31: Council's core assets	2020	
					
	Closing	Constructed	Vested	Replacement	
	book value	Additions	Additions	Cost	
	$000	$000	$000	$000	
Water supply					
treatment plants and facilities	–	–	–	–	
other assets	477,377	6,197	697	1,140,726	

Sewerage					
treatment plants and facilities	149,960	717	–	240,383	
other assets	599,951	15,585	1,455	1,346,545	

Stormwater drainage	
636,509	
3,661	
2,211	
1,219,884	

Flood protection and control works	
–	
–	
–	
–	

Roads and footpaths	
1,297,911	
50,374	
2,453	
1,949,278	
Total core assets	3,161,708	76,534	6,816	5,896,816	

Included within the infrastructure assets above (Table 30) are the core Council assets shown in Table 31.

Service concession arrangements
The Council’s service concession assets consist of the Moa Point treatment plant, including the sludge dewatering plant at Carey’s Gully, and Western (Karori) wastewater treatment plant. These facilities are owned by the Council, and included within infrastructure assets, but operated by Veolia Water under a contract with Wellington Water Limited. The contract also covers the Porirua wastewater treatment plant which is operating under a joint operation with Porirua City Council.

Insurance of assets

The Council incurs all associated operating expenses through the on-charged costs paid to Wellington Water Limited.
The Council transitioned to a new contract with Veolia Water, which covers the wastewater treatment
plants of Wellington, Porirua and Hutt City councils, on 24 February 2020. The contract expires 30 June 2030 with two rights of renewal for further subsequent terms of three and two years respectively.
The carrying value of these service concession assets for the Council and Group is $127.446m (2019: $148.632m).

Table 32: Insurance of assets

Total value of property, plant and equipment
less assets (primarily land) excluded from insurance contracts	Council		
	2020
$000

7,809,894
(3,814,663)	2019
$000

7,223,566
(3,758,087)	
Value of assets covered by insurance contracts	3,995,231	3,465,479	
The maximum amount to which assets are insured under Council insurance policies	721,000	1,074,000	

Water supply

Closing book value
$000

2019
Constructed Additions
$000

Vested Additions
$000

Replacement
Cost
$000

In addition to Council’s insurance, in the event of natural disaster it is assumed that Central Government will contribute 60 percent towards the rebuild or repair of essential Council owned infrastructure (drainage, waste and water assets) subject to eligibility considerations. Also, the New Zealand Transport Agency will contribute approximately 55 percent towards the restoration of qualifying roading assets.

Precinct assets are a class of assets that are not revalued and therefore any impairment must be recognised in the Statement of Comprehensive Revenue and Expense. This expense is non-cash in nature and does not affect rates in the current year.
During the 2019/20 year further impairments totalling
$8.102m were recognised for the Civic Precinct assets as follows. These were largely as a result of a review of the

treatment plants and facilities	–	–	–	–
other assets	352,610	12,346	4,039	942,263

Sewerage

treatment plants and facilities	168,751	113	–	241,523	
other assets	516,079	13,055	1,292	1,119,042	

Stormwater drainage	
423,223	
12,158	
2,751	
874,802	

Flood protection and control works	
–	
–	
–	
–	

Roads and footpaths	
1,050,017	
56,136	
4,148	
1,640,049	
Total core assets	2,510,680	93,808	12,230	4,817,679	
Drainage, waste, water and roads assets were revalued for the year ending 30 June 2020 by WSP New Zealand Limited as part of the normal revaluation cycle.

The Council is not covered by any financial risk sharing arrangements in relation to its assets.
An insurance reserve of $12.491m (2019: $11.198m) exists to meet the cost of claims that fall below deductible limits under Council insurance policies. The reserve is funded annually through rates. For the year ending 30 June 2020 an amount of $1.981m (2019: $1.500m) was added to the reserve. The net cost of claims applied to the reserve during the year amounted to $0.688m (2019: $1.708m).
Civic Precinct redevelopment
A large proportion of the Civic Precinct buildings were impaired in previous years due to large earthquake strengthening requirements or damage that occurred during the Kaikoura earthquake in November 2016. Civic

work in progress balances for these buildings:
Town Hall: a further impairment of $4.943m for costs related to a previous strengthening project which was superseded by the current project. The building has a book value of zero. Once the strengthening work on the Town Hall has been completed the full project value of
$112.400m will be capitalised as an asset.
Municipal Office Building (MOB): a further impairment of $2.180m is required due to significant increases in strengthening costs for the building bringing the book value down to zero.
Other Civic Precinct buildings: further impairments totalling $0.979m were recognised for CAB, Central library and underground car park and Capital E. These building all have a book value of zero.

Note 19:
Investment in controlled entities
The cost of the Council’s investment in controlled entities is reflected in the Council’s financial statements as follows in Table 33.

Note 20:
Investment in associates and joint venture

Table 35: Investment in associates and joint venture

Chaffers Marina Holdings Limited Wellington International Airport Limited Wellington Water Limited	Council		
	2020
$000

858
17,775
400	2019
$000

1,290
17,775
400	
Total investment in associates and joint venture	19,033	19,465	

The cost of the Council’s investment in associates and a joint venture is reflected in the Council financial statements as follows in Table 35.

Table 33: Investment in controlled entities

Wellington Cable Car Limited
Wellington Regional Economic Development Agency Limited (WREDA)	Council		
	2020
$000

3,809
1,262	2019
$000

3,809
1,262	
Total investment in controlled entities	5,071	5,071	

The equity investment represents the cost of the investment to the Council and includes all capital contributions made by the Council to controlled entities. The Council has only made equity investments as shareholders as noted in Table 33 above. Nominal settlement amounts (i.e. $100) made in respect of Trusts, for which Council is the settlor, have not been recognised

due to their materiality or are considered as equity investments.
Information on inter-company transactions is included in the Note 36: Related party disclosures (page 288).
The controlled entities of Council are listed as shown in Table 34.

The Council has significant influence over the following entities as listed in Table 36. All of these are domiciled and operate in New Zealand:

Table 36: Associates and
Joint venture	Accounting
Interest 2020	Accounting Nature of business Interest
2019	
Chaffers Marina Holdings Limited	10.72%	10.52% Holding company for Chaffers Marina Limited.	
Chaffers Marina Limited	10.72%	10.52% Owns and manages the marina.	
Wellington International Airport Limited	34%	34% Owns and manages Wellington International Airport facilities and services.	
Wellington Water Limited	40.00%	42.11% Manages all water services for Wellington, Lower Hutt, Upper Hutt and Porirua city councils, the South Wairarapa District Council and the Greater Wellington Regional Council.	
Full copies of the separately prepared financial statements can be obtained directly from their respective offices.

Table 34: Controlled entities	Accounting
Interest 2020	Accounting Nature of business Interest
2019	
Karori Sanctuary Trust (Trading as Zealandia)	100%	100% Owns and manages the activities of the urban eco-sanctuary in Karori	
Wellington Cable Car Limited	100%	100% Owns and manages the Cable Car	
Wellington Museums Trust (Trading as Experience Wellington)

Wellington Regional Economic Development Agency Limited (WREDA) (Trading as WellingtonNZ)

Creative HQ Limited	100%

80%

80%	100% Administers the Cable Car Museum, Capital E, the City Gallery, the Nairn Street Cottage, the Space Place (Carter Observatory), the Wellington Museum and the NZ Cricket
                                                                                                                                                        Museum	
80% Manages the Wellington Venues Project and creates economic and social benefit by marketing the city with
                                                                                                                                                        the private sector as a tourism destination.	
80% Business incubators	
Wellington Waterfront Limited	100%	100% Acts as bare trustee for the Waterfront project	
Wellington Zoo Trust	100%	100% Manages and guides the future direction of
                                                                                                                                                        the Wellington Zoo.		

The reporting period end date for all controlled entities is 30 June. Full copies of their financial statements can be obtained directly from their offices. Further information on the structure, objectives, the nature and scope of

activities, and the performance measures and targets
of the entities can be found in the relevant sections of the Statements of Service Provision.

Associates
Chaffers Marina
Chaffers Marina Holdings Limited and Chaffers Marina Limited have a reporting period end date of 30 June. The shares in Chaffers Marina Holdings Limited are held by Wellington Waterfront Limited in a fiduciary capacity. As at 30 June 2020 Council held a 10.72 percent interest in Chaffers Marina Holdings Limited (2019: 10.52 percent) which has been recognised in the Group financial statements on an equity accounting basis reflecting the special rights (as set out in Chaffers Marina Limited’s Constitution) which attach to the golden share that it holds in Chaffers Marina Limited. The small increase in the shareholding reflects a change to the company’s constitution lodged in December 2019. The decrease in the value of the investment as shown in Table 36 above
reflects a correction to the accounting treatment relating to historical berth sales and the effect on shares held.

Wellington International Airport Limited
Wellington International Airport Limited has a reporting period end date of 31 March. The ultimate majority owner,
Infratil Limited, has determined a different end
of reporting period to Council, which is legislatively required to use 30 June. The Council owns 34 percent of the company, with the remaining 66 percent owned by NZ Airports Limited (which is wholly owned by Infratil Limited). Council agreed on 23 April 2020 to underwrite additional equity, if required. For more information refer to Note 34: Contingencies (page 285).

Joint venture
Wellington Water Limited
Wellington Water Limited was jointly created with
Hutt City Council on 9 July 2003 to manage the drinking water, wastewater and stormwater assets of the councils. Since its inception it has gradually expanded its operations and now covers six councils in the Wellington region.

Jointly created with Hutt City Council on 9 July 2003 the company has expanded its operations and ownership to include Upper Hutt and Porirua city councils from
1 November 2013, the Greater Wellington Regional Council from 16 September 2014 and the South Wairarapa District Council from 26 September 2019.
The company has a reporting period ending 30 June and has a dual share structure as shown in Table 37.

Value of the investments

Table 38: Value of investment in associates and joint venture

Chaffers Marina Holdings Limited
Opening balance
Change in shares during the year
Change in equity due to changed shareholding Equity accounted earnings of associate	Group		
	2020
$000

849
(448)
7
(45)	2019
$000

855
–
– (6)	
Closing balance – investment in Chaffers Marina Holdings Limited	363	849	

Wellington International Airport Limited
Opening balance Dividends
Equity accounted earnings of associate
Share of net revaluation of property, plant and equipment – movement Share of hedging reserve – movement	

194,201
(12,061)
18,983
9,290
(427)	

186,313
(13,881)
16,327
4,760
682	
Closing balance – investment in Wellington International Airport Limited	209,986	194,201	

Wellington Water Limited
Opening balance
Change in equity due to changed shareholding Equity accounted earnings of joint venture	

723
(16)
(100)	

712
– 11	
Closing balance – investment in Wellington Water Limited	607	723	
Total value of investment in associates and joint venture	210,956	195,773	

The investment in associates and the joint venture in the Group financial statements represents the Council’s share of the net assets of the associates and the joint venture. This is reflected in the Group financial statements as follows:

Table 37 : Shareholding Councils	Class A shares	Class B Shares	Ownership interest	
Council	(voting rights) (financial entitlements)	
Wellington City	150	200	40%	
Hutt City	150	100	20%	
Upper Hutt City	150	40	8%	
Porirua City	150	60	12%	
Greater Wellington Regional	150	75	15%	
South Wairarapa District Council	150	25	5%	
Total shares on issue	900	500	100%	

The Council classifies this entity as a joint venture because of the equal sharing of voting rights conferred through the Class A shares and the shareholder’s agreement, which constitutes a binding arrangement.
The Class B shares confer the level of contributions and ownership benefits of each council. The Council uses equity accounting to recognise its 40 percent (2019: 42.11 percent) ownership interest.

The Council’s share of the operating surplus or deficit results of the Chaffers Marina Holdings Limited, Wellington International Airport Limited and Wellington Water Limited is outlined in Note 9: Share of Associates’ and Joint Venture’s surplus or deficit (page 213).

Summary of Financial Position and Performance of associates
Financial information relating to the Council’s associates is provided in Tables 39 and 40 below:

Table 39 : Chaffers Marina Holdings Limited	2020
$000	2019
$000	
Council			
Investment in Chaffers Marina Holdings Limited (at cost)	858	1,290	

Group			
Summarised financial information of associate			
Current assets	1,032	999	
Non-current assets	4,455	4,624	
Current liabilities	(178)	(154)	
Non-current liabilities	(1,924)	(1,660)	
Net assets	3,385	3,809	

Revenue	
1,385	
1,671	
Tax expense	–	–	

Surplus / (deficit) after tax	
(375)	
(36)	
Other comprehensive revenue and expense	–	–	
Total comprehensive revenue and expense	(375)	(36)	

Reconciliation to equity accounted carrying amount			
Net assets	3,385	3,809	
Group's share %	10.72%	10.52%	
Group's share $000	363	401	
Other consolidation adjustments	–	448	
Equity accounted carrying amount	363	849	

Risks associated with the Council's investment in the associate
Share of contingent liabilities	

–	

–	

Table 40 : Wellington International Airport Limited	2020
$000	2019
$000	
Council			
Investment in Wellington International Airport Limited (at cost)	17,775	17,775	

Group			
Dividends received	12,061	13,881	

Summarised financial information of associate			
Current assets	35,043	43,943	
Non-current assets	1,336,927	1,216,550	
Current liabilities	(89,204)	(114,952)	
Non-current liabilities	(641,835)	(541,875)	
Net assets	640,931	603,666	

Revenue	
146,377	
137,889	
Tax credit /(expense)	34,527	(234)	

Surplus / (deficit) after tax	
(5,640)	
23,541	
Other comprehensive revenue and expense	22,590	7,339	
Total comprehensive revenue and expense	16,950	30,880	

Reconciliation to equity accounted carrying amount			
Net assets	640,931	603,666	
Group's share %	34%	34%	
Group's share $000	217,917	205,246	
Dividends received not in WIAL Annual Report	(12,061)	(13,881)	
Difference on adoption of IFRS 9	4,129	2,948	
Other consolidation adjustments	1	(112)	
Equity accounted carrying amount	209,986	194,201	

Risks associated with the Council's investment in the associate
Share of contingent liabilities	

–	

–	

Summary of Financial Position and Performance of joint venture

Table 41 : Wellington Water Limited	2020
$000	2019
$000	
Council			
Investment in Wellington Water Limited (at cost)	400	400	

Group			
Summarised financial information of joint venture			
Current assets			
Cash and cash equivalents	18,969	13,537	
Other current assets	11,609	4,881	
Total current assets	30,578	18,418	
Non-current assets	2,288	2,585	
Current liabilities			
Financial liabilities (excluding accounts payable)	–	–	
Other current liabilities	(31,156)	(19,016)	
Total current liabilities
Non-current liabilities
Financial liabilities (excluding accounts payable) Other non-current liabilities	(31,156)

– (192)	(19,016)

– (269)	
Total non-current liabilities	(192)	(269)	
Net assets	1,518	1,718	

Revenue, excluding interest	
187,668	
135,818	
Interest revenue	127	291	
Depreciation and amortisation	(1,117)	(1,039)	
Interest expense	–	(19)	
Tax expense	–	(9)	

Surplus / (deficit) after tax	
(251)	
30	
Other comprehensive revenue and expense	–	–	
Total comprehensive revenue and expense	(251)	30	

Reconciliation to equity accounted carrying amount			
Net assets	1,518	1,718	
Group's share %	40.00%	42.11%	
Group's share $000	607	723	
Other consolidation adjustments	–	–	
Equity accounted carrying amount	607	723	

Risks associated with the Council's investment in the joint venture
Shareholder funding commitments for the next three years Share of contingent liabilities	

–
–	

–
–	

Financial information relating to the Council’s joint venture is provided in Table 41 below:

Note 21:
Exchange transactions, transfers and taxes payable

Table 42: Exchange transactions,	Council		Group		
transfers and taxes payable					
	2020
$000	2019
$000	2020
$000	2019
$000	
Current					
Exchange transactions and transfers payable	57,417	65,366	60,404	70,452	
Taxes payable	8,185	6,599	8,458	6,780	

Non-current					
Exchange transactions and transfers payable	231	231	231	231	
Total exchange transactions, transfers and taxes payable	65,833	72,196	69,093	77,463	

Comprised of:

Table 43: Exchange transactions	Council		Group		
and transfers payable					
	2020
$000	2019
$000	2020
$000	2019
$000	

Trade payables and accruals	
50,015	
56,177	
52,968	
61,168	
Interest payable	3,519	3,805	3,519	3,805	
Sundry payables	4,114	5,615	4,148	5,710	
Total exchange transactions and transfers payable	57,648	65,597	60,635	70,683	

Table 44: Taxes payable

GWRC rates Other	Council		Group		
	2020
$000

5,332
2,853	2019
$000

4,290
2,309	2020
$000

5,332
3,126	2019
$000

4,290
2,490	
Total taxes payable	8,185	6,599	8,458	6,780	
Total exchange transactions, transfers and taxes payable	65,833	72,196	69,093	77,463	

COVID-19
On 9 April 2020, Council agreed to proactively support business cashflows by temporarily changing its terms of trade payment dates. This reduced the payment
timeframes for payments to suppliers who provide goods and services to the Council down from 20 to 5 days for valid authorised invoices. This practice was still in place as at 30 June 2020 to ensure that suppliers were able to maintain their own cashflows by having received prompt payment.

Table 45: Exchange transactions, transfers and payable to related parties	Council		Group		
	2020
$000	2019
$000	2020
$000	2019
$000	

Controlled entities
Associates and jointly controlled entity	
309
6,945	
379
1,754	– 6,945	– 1,754	
Total exchange transactions, transfers and payable to related parties	7,254	2,133	6,945	1,754	

Payables under exchange transactions, transfers and taxes payable are non-interest bearing and are normally settled on terms varying between seven days and the 20th of
the month following the invoice date. Most of Council’s
payables are exchange transactions as they are directly with another party on an arm’s length basis and are of approximately equal value. Non-exchange payables are classified as either transfers payable (eg. Council grants) or taxes (eg. PAYE).

Note 22:

Table 46: Revenue in advance

Exchange Lease rentals Other

Taxes
Rates

Transfers
Wellington Venues operations Inspection and licensing fees Other
Liabilities recognised under conditional transfer agreements	Council		Group		
	2020
$000

2,146
–

1,742

950
4,578
953
3,933	2019
$000

2,300
–

1,239

1,218
4,084
1,252
3,980	2020
$000

2,146
2,434

1,742

950
4,578
1,525
5,958	2019
$000

2,300
858

1,239

1,218
4,084
1,894
5,802	
					
Total revenue in advance	14,302	14,073	19,333	17,395	

Revenue in advance

Liabilities recognised under conditional transfer agreements
Council and the Group have received non-exchange transfer monies for specific purposes, which apply to periods beyond the current year, with conditions that would require the return of the monies if they are not able to fulfil the agreement. The revenue from these agreements will only be recognised as the conditions are fulfilled over time.
These liabilities relate to various naming rights agreements that Council has with third parties for buildings.

Relevant significant accounting policies

Note 23:
Borrowings
The Council maintains a prudent borrowings position in relation to our equity and annual revenue. Borrowings are primarily used to fund the purchase of new assets or upgrades to existing assets that are approved through the Annual Plan and Long-Term Plan processes.

COVID-19
While Council undertook additional borrowing as an initial response, this measure was to ensure future liquidity
was assured and not due to immediate revenue loss or cost pressures.

Net Borrowings
When the cash position of Council and the Group is taken into account the net borrowings position is comprised as follows in Table 48 below.

Table 48: Net borrowings

Total gross borrowings

Less
Cash and cash equivalents (see Note 11) Term deposits > 3 months < 12 Months	Council		Group		
	2020
$000

775,931

(98,577)
(30,000)	2019
$000

688,956

(135,246)
(9,000)	2020
$000

775,979

(113,285)
(32,000)	2019
$000

689,033

(149,089)
(10,250)	
Total net borrowings	647,354	544,710	630,694	529,694	

Gross Borrowings
The gross borrowings are comprised as follows in Table 47 below:

Table 47: Gross borrowings

Current
Bank loans – term Commercial paper
Debt securities – fixed rate bonds Debt securities – floating rate notes
Finance leases	Council		Group		
	2020
$000

– 68,000
25,000
93,000
–	2019
$000

39
85,000
5,000
35,000
–	2020
$000

– 68,000
25,000
93,000
28	2019
$000

39
85,000
5,000
35,000
29	
Total current	186,000	125,039	186,028	125,068	

Non-current
Bank loans – term
Debt securities – fixed rate bonds Debt securities – floating rate notes Finance leases	

5,931
35,000
549,000
–	

5,417
40,000
518,500
–	

5,931
35,000
549,000
20	

5,417
40,000
518,500
48	
Total non-current	589,931	563,917	589,951	563,965	
Total gross borrowings	775,931	688,956	775,979	689,033	

The Council’s borrowing strategy is to minimise liquidity risk by avoiding concentration of debt maturity dates and to ensure there is long term access to funds. Further information on the liquidity and market risks associated with borrowings is contained in Note 32: Financial instruments (page 275).

Table 49, as follows, shows the utilisation of the borrowing facilities available to the Group at the end of the reporting period. The table also indicates the current applicable maturity and interest rate ranges.

Table 49: Group borrowing facilities	Available
$000	Utilised
$000	Maturities	Interest Rate
Range %	

Bank overdraft – committed	
1,900	
–			
Bank facilities – short term – uncommitted	5,000	–			
Bank facilities – long term – committed	120,000	–			
Bank loans – term	5,931	5,931	2022–2041	4.3	
Commercial paper	100,000	68,000	August 2020–September 2020	0.33–1.33	
Debt securities – fixed rate bonds	60,000	60,000	April 2021–April 2033	1.35–5.37	
Debt securities – floating rate notes	642,000	642,000	August 2020–April 2033	0.54–1.28	
Finance leases	48	48			
Total	934,879	775,979			

The bank overdraft facility is $1.500m for Council and $0.400m for WREDA.					
In addition to the above facilities, Council operates purchase cards to efficiently facilitate the purchase of goods and services. The cards are paid in full on
a monthly basis. An aggregate bank limit of $2.000m
for all cards applies across Council.					

Security
Borrowings are secured by way of a Debenture Trust Deed over the Council’s rates revenue.
Internal Borrowings
Council borrows on a consolidated level and as such does not use internal borrowing and therefore does not prepare internal borrowing statements.
Ring fenced funds
The Council holds $52.537m (2019: $42.755m) of funds that may only be used for a specified purpose. These funds are not held in cash but are utilised against borrowings until required. The main specified uses for these funds
are as follows:

Housing upgrade project
As part of the agreement with the Crown for the Housing Upgrade Project an amount of $44.390m (2019: $32.556m), representing the accumulated surpluses and deficits from the Housing activity, has been ring fenced for future investment in the Council’s social housing assets.
Waste reduction and energy
An amount of $11.344m (2019: $10.199m) related to accumulated surpluses and deficits from the Waste Reduction and Energy Conservation activity which, under the Waste Minimisation Act 2008, must be ring fenced for future investment in waste activities. Council is committed to a number of waste minimisation projects that will utilise these funds.

Note 24:
Employee benefit liabilities and provisions

Table 50: Employee benefit liabilities and provisions	Council		Group		
	2020
$000	2019
$000	2020
$000	2019
$000	
Current					
Short-term benefits					
Payroll accruals	3,189	2,152	4,105	2,851	
Holiday leave	7,068	5,521	8,641	6,865	
Total short-term benefits	10,257	7,673	12,746	9,716	

Termination benefits
Other contractual provisions	

104	

19	

127	

19	
Total termination benefits	104	19	127	19	
Total current	10,361	7,692	12,873	9,735	

Non-current					
Long-term benefits					
Long service leave provision	–	–	60	67	
Retirement gratuities provision	764	782	764	782	
Total long-term benefits	764	782	824	849	
Total employee benefit liabilities and provisions	11,125	8,474	13,697	10,584	

A provision for employee benefit liabilities (holiday leave, long service leave and retirement gratuities) is recognised as a liability when benefits are earned but not paid.
Holiday leave
Holiday leave includes annual leave, long service leave, statutory time off in lieu and ordinary time off in lieu. Annual leave is calculated on an actual entitlement basis in accordance with section 21(2) of the Holidays Act 2003.

Relevant significant accounting policies – general

COVID-19
Due to the initial lockdown and the imposed travel restrictions fewer employees have taken leave in the last quarter of the year. 414 staff cancelled their leave (1,818 days) between the initial lockdown and the end of the period. As at 30 June 2020 staff had 4,400 days more leave compared to 30 June 2019, and as a result the leave liability has increased compared to the prior year by $1.529m.

Table 52: Other contractual provisions

Opening balance New provision
Release of unused provision
Amount utilised	Council		Group		
	2020
$000

19
104
– (19)	2019
$000

220
19
– (220)	2020
$000

19
127
– (19)	2019
$000

220
19
– (220)	
Other contractual provisions – closing balance	104	19	127	19	

Table 51: Retirement gratuities provision

Opening balance
Movement in required provision Release of unused provision Rediscounting of interest Amount utilised	Council		Group		
	2020
$000

782
59
– 10
(87)	2019
$000

772
27
– 13
(30)	2020
$000

782
59
– 10
(87)	2019
$000

772
27
– 13
(30)	
Retirement gratuities – closing balance	764	782	764	782	

Movements in material employee benefit provisions above are analysed in the following tables:

Background to Table 51
The Council’s retirement gratuities provision is a contractual entitlement for a reducing number of employees who, having qualified with 10 years’ service will, on retirement, be entitled to a payment based on years of service and current salary. This entitlement has not been offered to Council employees since 1991.
Based on the age of remaining participants the provision may not be extinguished until 2037, assuming retirement at age 65.
Estimation
The gross retirement gratuities provision (inflation adjusted at 1.90 percent) as at 30 June 2020, before discounting, is $0.820m (2019: $0.897m). The discount factor of 2.23 percent is based on the Treasury risk-free retirement rate.

Background to Table 52

Retirement gratuities are calculated on an actuarial basis based on the likely future entitlements accruing to employees, after taking into account years of service, years to entitlement, the likelihood that employees will reach the point of entitlement, and other contractual entitlements information.

Relevant significant accounting policies – Table 51 specific

Other contractual provisions include termination benefits, which are recognised within surplus or deficit only when there is a demonstrable commitment to either terminate employment prior to normal retirement date or to provide such benefits as a result of
an offer to encourage voluntary redundancy. Termination benefits settled within 12 months are reported at the amount expected to be paid, otherwise they are reported as the present value of the estimated future cash outflows.

Relevant significant accounting policies – Table 52 specific

The above provision is to cover estimated redundancy costs as at 30 June 2020 resulting from current restructuring within the Council.

Note 25:
Provisions for other liabilities

Table 54: Landfill post closure costs

Opening balance Movement in provision
Re-discounting of interest
Amount utilised	Council		Group		
	2020
$000

20,977
10
1,141
(333)	2019
$000

19,171
2,312
649
(1,155)	2020
$000

20,977
10
1,141
(333)	2019
$000

19,171
2,312
649
(1,155)	
Landfill post closure costs – closing balance	21,795	20,977	21,795	20,977	
Current
Non-current	1,143
20,652	1,518
19,459	1,143
20,652	1,518
19,459	
Landfill post closure costs – closing balance	21,795	20,977	21,795	20,977	

Movements in material provisions above are analysed in the following tables:

Table 53: Provisions for other liabilities

Current
Landfill post closure costs Weathertight homes	Council		Group		
	2020
$000

1,143
7,859	2019
$000

1,518
9,372	2020
$000

1,143
7,859	2019
$000

1,518
9,372	
Total current	9,002	10,890	9,002	10,890	

Non-current
Landfill post closure costs Weathertight homes	

20,652
31,502	

19,459
28,750	

20,652
31,502	

19,459
28,750	
Total non-current	52,154	48,209	52,154	48,209	
Total provisions for other liabilities	61,156	59,099	61,156	59,099	

Background to Table 54

Provisions are recognised for future liabilities of uncertain timing or amount when there is a present obligation as a result of a past event, it is probable that expenditure will be required to settle the obligation and a reliable estimate of the obligation can be made. Provisions are measured at the expenditure expected to be required to settle the obligation. Liabilities and provisions to be settled beyond 12 months are recorded at their present value.

Relevant significant accounting policies – general

The Council operates the Southern Landfill (Stage 3) and has a 21.5 percent joint venture interest in the Spicer Valley Landfill. It also manages a number of closed landfill sites around Wellington. The Council has responsibility for the closure of its landfills and to provide ongoing maintenance and monitoring of the landfills after they are closed.

A provision for post-closure costs is recognised as a liability when the obligation for post-closure arises, which is when each stage of the landfill is commissioned, and refuse begins to accumulate.
The provision is measured based on the present value of future cash flows expected to be incurred, taking into account future events including known changes to legal requirements and known improvements in technology. The provision includes all costs associated with landfill post-closure including final cover application and vegetation; incremental drainage control features; completing facilities for leachate collection and monitoring; completing facilities for water quality monitoring; completing facilities for monitoring and recovery of gas.
Amounts provided for landfill post-closure are capitalised to the landfill asset. The capitalised landfill asset is depreciated over the life of the landfill based on the capacity used.
The Council’s provision for landfill post-closure
costs includes the Council’s 21.5 percent proportionate share of the Spicer Valley landfill provision for post- closure costs.

Relevant significant accounting policies – Table 54 specific

As part of the closure of landfills, or landfill stages, the Council’s responsibilities include:
final cover application and vegetation;
incremental drainage control features; and
completing facilities for post closure responsibilities.

Post closure responsibilities include:
treatment and monitoring of leachate;
ground water and surface monitoring;
gas monitoring and recovery;
implementation of remedial measures such as needed for cover and control systems; and
on-going site maintenance for drainage systems, final cover and vegetation.

The management of the landfill will influence the timing of recognition of some liabilities – for example, the Southern Landfill operates in stages. A liability relating to any future stages will only be created when the stage is commissioned and when refuse begins to accumulate in this stage.

The Council, as operator of the Southern Landfill, has a legal obligation to apply for resource consents when the landfill or landfill stages reach the end of their operating life and are to be closed. These resource consents will set out the closure requirements and the requirements for ongoing maintenance and monitoring services at the landfill site after closure.

Estimations

The significant assumptions used in the calculation of the weathertight homes provision are as follows:

The long-term nature of the liability means there are inherent uncertainties in estimating costs that will be incurred. The provision has been estimated using known improvements in technology and known changes to legal requirements. Future cash flows are discounted using the Treasury risk free rate of 1.67 percent and
0.8 percent for open and closed landfills respectively. The gross provision (inflation adjusted at 1.65 percent) before discounting, is $23.528m (2019: $24.393m). This represents the Council’s projection of the amount required to settle the obligation at the estimated time of the cash outflow.

Stage 3 of the Southern Landfill has an estimated remaining capacity of 525,714 m3 (2019: 554,940 m3) and is expected to close in 2022. These estimates have been made by the Council’s engineers based on expected future and historical volume information.
The Council’s provision includes a proportionate share of the Spicer Valley Landfill provision for post closure costs. The Spicer Valley Landfill has a remaining life out to 2052.

Amount claimed
Represents the expected amount claimed by the homeowner and is based on the actual amounts for claims already settled.
Settlement amount
Represents the expected amount of awarded settlement and is based on the actual amounts for claims already settled.
Amount expected to be paid by the Council
Represents the amount expected to be paid by the Council out of any awarded settlement amount and is based on the actual amounts for claims already settled.
Sensitivity

This figure has been increasing over the last few years as
it is becoming more common for the other parties involved in a claim to be either in liquidation or bankrupt or have limited funds and be unable to contribute to settlement.
Percentage of homeowners
who will make a successful claim
Historical data collected on the number of claims lodged has enabled assumptions to be made on the percentage of homes built in the last 10 years which may experience weathertightness problems and therefore the percentage of homeowner who may make a successful claim.

Table 55: Weathertight homes

Opening balance
Additional or increased provision made Amount utilised	Council		Group		
	2020
$000

38,122
4,622
(3,383)	2019
$000

46,275
2,794
(10,947)	2020
$000

38,122
4,622
(3,383)	2019
$000

46,275
2,794
(10,947)	
Weathertight homes – closing balance	39,361	38,122	39,361	38,122	
Current
Non-current	7,859
31,502	9,372
28,750	7,859
31,502	9,372
28,750	
Weathertight homes – closing balance	39,361	38,122	39,361	38,122	

Table 56 below illustrates the potential impact on surplus or deficit of changes in some of the assumptions listed above.

Effect on Surplus or Deficit 3,937	(3,936)
3,937	(3,936)
3,937	(3,936)
1,326	(1,325)

2020
$000
-10%

+10%

Council and Group

Table 56: Weathertight provision sensitivity

Background to Table 55
This provision represents the Council’s estimated liability relating to the settlement of claims arising in relation to the Weathertight Homes Resolution Services (WHRS) Act 2006 and civil proceedings for weathertightness.
A provision has been recognised for the potential net settlement of all known claims, including those claims that are being actively managed by the Council as well as claims lodged with WHRS but not yet being actively managed. The provision also includes an amount of
$13.254m (2019: $11.906m) as a provision for future claims relating to weathertightness issues not yet identified or not yet reported.
Movement in the provision
During the year $3.383m was paid as either part or full settlement of claims. An additional $4.622m was
added to the provision after an actuarial re-assessment of the likely future costs to be incurred as explained below. The current / non-current split above reflects the expected timing of payments but is reassessed
each year to take account of delays in claim negotiations and any mediation outcomes.

Estimation
The Council has provided for the expected future costs
of reported claims. The provision for active claims is based on the best estimate of the Council’s expected future costs to settle these claims and is reviewed on a case by case basis. The estimate for claims which have been notified and are not yet actively managed and unreported claims
is based on actuarial assessments and other information on these claims. The nature of the liability means there are significant inherent uncertainties in estimating the likely costs that will be incurred in the future. This represents the Council’s best estimate of the amount required to settle the obligation at the estimated time of the cash outflow. Future cash flows are inflation adjusted and discounted using the Treasury’s risk-free rate. The provision is net
of any third-party contributions including insurance, where applicable.
The provision is based on best estimates and actuarial assessments and therefore actual costs incurred may vary significantly from those included in this provision, especially for future claims relating to weathertightness issues not yet identified or not yet reported.

Assumption
Amount claimed Settlement level award
Council contribution to settlement

+2%

-2%

Effect on Surplus or Deficit
(2,428)	883

Change in percentage of homeowners who will make a successful claim

Assumption
Discount rate

Funding of weathertight homes settlements

Table 57: Funding for weathertight	Council		Group		
homes liability					
	2020
$000	2019
$000	2020
$000	2019
$000	

Opening balance	
(36,036)	
(31,132)	
(36,036)	
(31,132)	
Rates funding for weathertight homes liability	7,677	7,447	7,677	7,447	
Total amounts paid	(3,383)	(10,947)	(3,383)	(10,947)	
Interest allocation	(1,186)	(1,404)	(1,186)	(1,404)	
Closing balance funded through borrowings	(32,928)	(36,036)	(32,928)	(36,036)	

Council uses borrowings in the first instance to meet the cost of settlements with the associated borrowings subsequently being repaid through rates funding. To ensure that the funding of weathertight homes is fully transparent the associated settlement costs, borrowings and rates funding is reported annually.

Note 26:
Deferred tax
Recognised temporary differences and tax losses

Table 58: Deferred tax asset / (liability)

Opening balance
Property, plant and equipment Intangible assets
Employee entitlements Other provisions
Tax losses	Group		
	2020
$000

(1,206)
(20)
193
13
6	2019
$000

(1,071)
(22)
188
14
9	
Total opening balance	(1,014)	(882)	

Charged to surplus or deficit Property, plant and equipment Intangible assets
Employee entitlements Other provisions
Tax losses	

497
26
(14)
(1)
198	

(135)
2
5
(1)
(3)	
Total charged to surplus or deficit	706	(132)	

Closing balance
Property, plant and equipment Intangible assets
Employee entitlements Other provisions
Tax losses	

(709)
6
179
12
204	

(1,206)
(20)
193
13
6	
Total closing balance	(308)	(1,014)	

Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used
for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the assets and liabilities, and the unused tax losses using tax rates enacted or substantively enacted at the end of the reporting period. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which they can be utilised.

Relevant significant accounting policies

Unrecognised tax losses
Under current income tax legislation, the unrecognised tax losses do not expire.
There is an unrecognised deferred tax asset in respect of the tax losses for the Council of $0.053m (2019:
$0.134m).
Deferred tax assets have not been recognised in respect of these items as it is not probable that future taxable profits will be available against which the benefit of the losses can be utilised.

Statement of Changes in Equity
For the year ended 30 June 2020

Note	Council		Group		
		Actual	Budget	Actual	Actual	Actual	
		2020	2020	2019	2020	2019	
		$000	$000	$000	$000	$000	
Equity – Opening balances							
Accumulated funds		1,269,134	1,269,134	1,269,134	1,293,162	1,293,162	
Retained earnings		3,795,806	3,845,492	3,819,629	3,799,312	3,818,478	
Revaluation reserves		1,854,208	1,840,250	1,857,464	2,017,583	2,016,078	
Hedging reserve		(68,138)	(62,495)	(25,362)	(67,757)	(25,663)	
Fair value through other comprehensive revenue and expense reserve		4,290	3,744	3,744	5,328	4,836	
Non-controlling interest		–	–	–	284	284	
Restricted funds		14,865	14,909	14,909	19,033	19,136	
Total equity – Opening balance	6,870,165	6,911,034	6,939,518	7,066,945	7,126,311	

Changes in equity Retained earnings
Net surplus / (deficit) for the year Transfer to restricted funds Transfer from restricted funds Transfer from revaluation reserves
Revaluation reserves	27
Fair value movement – property, plant and equipment – net
Transfer to retained earnings
Hedging reserve	28
Movement in hedging reserve
Fair value through other comprehensive	29
revenue and expense reserve
Movement in fair value – Equity investments Movement in fair value – Available for sale equities

Non-controlling interest
Movement of non-controlling interest

Restricted funds	30
Transfer to retained earnings Transfer from retained earnings	

15,146	

(8,537)	

(23,867)	

22,812	

(19,269)	
	(4,049)	(2,001)	(3,267)	(4,494)	(4,300)	
	2,732	1,006	3,311	3,500	4,403	
	127	–	–	127	–	
	
493,980	
204,856	
(3,256)	
503,245	
1,505	
	(127)	–	–	(127)	–	
	
(38,903)	
–	
(42,776)	
(39,330)	
(42,094)	
	
795	
–	
546	
795	
546	
	–	–	–	(23)	(54)	
	
–	
–	
–	
–	
–	
	
(2,732)	
(1,006)	
(3,311)	
(3,500)	
(4,403)	
	4,049	2,001	3,267	4,494	4,300	
Total comprehensive revenue and expense	471,018	196,319	(69,353)	487,499	(59,366)	
The notes from pages 199 to 299 form part of and should be read in conjunction with the financial statements

Note	Council		Group		
		Actual	Budget	Actual	Actual	Actual	
		2020	2020	2019	2020	2019	
		$000	$000	$000	$000	$000	
Equity – Closing balances							
Accumulated funds		1,269,134	1,269,134	1,269,134	1,293,162	1,293,162	
Retained earnings		3,809,762	3,835,960	3,795,806	3,821,257	3,799,312	
Revaluation reserves		2,348,061	2,045,106	1,854,208	2,520,701	2,017,583	
Hedging reserve		(107,041)	(62,495)	(68,138)	(107,087)	(67,757)	
Fair value through other comprehensive revenue and expense reserve		5,085	3,744	4,290	6,100	5,328	
Non-controlling interest		–	–	–	284	284	
Restricted funds		16,182	15,904	14,865	20,027	19,033	
Total equity – Closing balance	7,341,183	7,107,353	6,870,165	7,554,444	7,066,945	

Total comprehensive revenue and expense attributable to:

Council		Group		
Actual	Budget	Actual	Actual	Actual	
2020	2020	2019	2020	2019	
$000	$000	$000	$000	$000	

471,018	
196,319	
(69,353)	
487,215	
(59,650)	
–	–	–	284	284	
471,018	196,319	(69,353)	487,499	(59,366)	

Wellington City Council and Group Non-controlling interest

The notes from pages 199 to 299 form part of and should be read in conjunction with the financial statements

Statement of changes in equity – Major budget variations
Significant variations from budgeted changes in equity are as follows:
Opening equity is $40.869m under budget. This is largely due to the $50.522m impairment of the Civic Centre Precinct which only finalised after the 2019/20 budget had been approved by Council.
Closing equity is $233.830m higher than budgeted, major variance included:
$289.124m higher property, plant and equipment revaluations
$38.903m decrease in the hedging reserve due to unfavourable changes in interest swap rates
$23.683m higher surplus for the year largely due to the $33m CAB insurance proceeds recognised as an adjustable event after the reporting date.

Equity
Equity is the community’s interest in the Council and Group and is measured as the difference between total assets and total liabilities. Equity is broken down and classified into a number of components:
accumulated funds and retained earnings;
revaluation reserves;
hedging reserve;
fair value through other comprehensive revenue and expense reserve; and
restricted funds.

Restricted funds are those reserves that are subject to specific conditions of use, whether under statute or accepted as binding by the Council, and that may
not be revised without reference to the Courts or third parties. Transfers from these reserves may be made only for specified purposes or when certain specified conditions are met.

Equity management
The Local Government Act 2002 (the Act) requires the Council to manage its revenues, expenses, assets, liabilities, investments, and general financial dealings prudently and in a manner that promotes the current
and future interests of the community. Ratepayer funds are largely managed as a by-product of managing revenues, expenses, assets, liabilities, investments, and general financial dealings.
The objective of managing these items is to achieve intergenerational equity, which is a principle promoted in the Act and applied by the Council. Intergenerational equity requires today’s ratepayers to meet the costs of utilising the Council’s assets but does not expect them
to meet the full cost of long-term assets that will benefit ratepayers in future generations. Additionally, the Council has asset management plans in place for major classes of assets, detailing renewal and programmed maintenance. These plans ensure ratepayers in future generations are not required to meet the costs of deferred renewals and maintenance.
The Act requires the Council to make adequate and effective provision in its Long-Term Plan (LTP) and in its Annual Plan (where applicable) to meet the expenditure needs identified in those plans. The Act sets out the factors that the Council is required to consider when determining the most appropriate sources of funding for each of its activities. The sources and levels of funding are set out in the funding and financial policies in the Council’s LTP.

Note 27:
Revaluation reserves

Table 59: Revaluation reserves

Land – opening balance	Council		Group		
	2020
$000

203,103	2019
$000

203,103	2020
$000

203,103	2019
$000

203,103	
Land – closing balance	203,103	203,103	203,103	203,103	

Buildings – opening balance	
359,189	
362,445	
359,189	
362,445	
Impairment taken from revaluation reserve	–	(3,256)	–	(3,256)	
Revaluation adjustment	(7,643)	–	(7,643)	–	
Transfer between assets classes	(34,518)	–	(34,518)	–	
Transfer to retained earnings due to disposal of assets	(127)	–	(127)	–	
Buildings – closing balance	316,901	359,189	316,901	359,189	

Library collections – opening balance	
8,392	
8,392	
8,392	
8,392	
Revaluation recognised in other comprehensive revenue and expense	200	–	200	–	
Library collections – closing balance	8,592	8,392	8,592	8,392	

Drainage, waste and water – opening balance	
764,153	
764,153	
764,153	
764,153	
Revaluation recognised in other comprehensive revenue and expense	404,633	–	404,633	–	
Transfer between assets classes	(1,047)	–	(1,047)	–	
Drainage, waste and water – closing balance	1,167,739	764,153	1,167,739	764,153	

Infrastructure land – opening balance	
18,858	
18,858	
18,858	
18,858	
Revaluation recognised in other comprehensive revenue and expense	5,944	–	5,944	–	
Infrastructure land – closing balance	24,802	18,858	24,802	18,858	

Roading – opening balance	
500,513	
500,513	
500,513	
500,513	
Revaluation recognised in other comprehensive revenue and expense	90,846	–	90,846	–	
Transfer between assets classes	35,565	–	35,565	–	
Roading – closing balance	626,924	500,513	626,924	500,513	

Associates' revaluation reserves – opening balance	
–	
–	
163,375	
158,614	
Revaluation recognised in other comprehensive revenue and expense	–	–	9,290	4,761	
Effect of change in shareholding	–	–	(25)	–	
Associates' revaluation reserves – closing balance	–	–	172,640	163,375	
Total revaluation reserves – closing balance	2,348,061	1,854,208	2,520,701	2,017,583	

These revaluation reserves are represented by:

Table 60: Summary of revaluation	Council		Group		
reserve movements					
	2020
$000	2019
$000	2020
$000	2019
$000	

Opening balance	
1,854,208	
1,857,464	
2,017,583	
2,016,078	
Revaluation recognised in other comprehensive revenue and expense	501,623	–	510,913	4,761	
Effect of change in shareholding	–	–	(25)	–	
Impairment taken from revaluation reserve	–	(3,256)	–	(3,256)	
Revaluations adjustment	(7,643)	–	(7,643)	–	
Transfer to retained earnings due to disposal of assets	(127)	–	(127)	–	
Total revaluation reserves	2,348,061	1,854,208	2,520,701	2,017,583	

The result of any revaluation of the Group’s property, plant and equipment is recognised within other comprehensive revenue and expense and taken to the asset revaluation reserve. Where this results in
a debit balance in the reserve for a class of property, plant and equipment, the balance is included in the surplus or deficit. Any subsequent increase on revaluation that offsets a previous decrease in value recognised within surplus or deficit will be recognised firstly, within surplus or deficit up to the amount previously expensed, and with any remaining increase recognised within other comprehensive revenue and expense and in the revaluation reserve for that class of property, plant and equipment.
Any impairment in a revalued class of asset is recognised within other comprehensive revenue and expense and taken to the asset revaluation reserve.
Accumulated depreciation at the revaluation date is eliminated so that the carrying amount after revaluation equals the revalued amount.
While assumptions are used in all revaluations, the most significant of these are in infrastructure. For example, where stormwater, wastewater and water supply pipes are underground, the physical deterioration and condition of assets are not visible and must therefore be estimated. Any revaluation risk is minimised by performing a combination of physical inspections and condition modelling assessments

Relevant significant accounting policies

increases and decreases in the fair value of certain asset

The revaluation reserves are used to record accumulated

classes. The impairment of buildings in 2018/19 related to two earthquake prone Social Housing sites and Arlington site 1, which was subject to a signed long-term lease agreement going unconditional in March 2020 and subsequent redevelopment by Kainga Ora.
For the period ending 30 June 2020 Council has revalued its investment properties, which are revalued annually – refer to Note 17: Investment properties, for more information (page 228).
Council also revalued its Infrastructure networks, infrastructure land and Library collection – refer to Note 18: Property, Plant and Equipment, for more information (page 229). The revaluations have all been carried out up
to 30 June 2020 to account for any COVID-19 effects, particularly on the relevant indices used.
Revaluation movements are non-cash in nature and represent the restating of the Council’s assets, subject
to revaluation, into current dollar values after taking into account the condition and remaining lives of the assets.
COVID-19
For the year ending 30 June 2020, as part of the normal 3-year cycle, Council undertook revaluations of its
3-Waters and Roading network infrastructures, along with infrastructure land and Library collections. This work was almost complete up to 31 March, which is acceptable for use in the year-end financial statements, when Alert Level 4 was put in place in late March. Consequently, Council, along with all public entities were required to review their revaluations out to 30 June to ensure that they still materially represented fair value at the reporting date.

Note 28:
Hedging reserve

Note 29:

Table 62: Fair value through other	Council		Group		
comprehensive revenue and expense reserve					
	2020
$000	2019
$000	2020
$000	2019
$000	

Opening balance	
4,290	
3,744	
5,328	
4,836	
Movements:					
Civic Financial Services Limited	13	(272)	13	(272)	
Local Government Funding Agency	782	818	782	818	
Creative HQ shareholdings – available for sale	–	–	(23)	(54)	
Total fair value through other comprehensive revenue and expense reserve	5,085	4,290	6,100	5,328	

Fair value through other comprehensive revenue and expense reserve

Table 61: Hedging reserve

Opening balance
Cash flow hedge net movement recognised
in other comprehensive revenue and expenses	Council		Group		
	2020
$000

(68,138)
(38,903)	2019
$000

(25,362)
(42,776)	2020
$000

(67,757)
(39,330)	2019
$000

(25,663)
(42,094)	
Total hedging reserve	(107,041)	(68,138)	(107,087)	(67,757)	

The hedging reserve shows accumulated fair value changes for interest rate swaps which satisfy the criteria for hedge accounting and have operated as effective hedges during the period.
The Council uses interest rate swaps to fix interest rates on floating rate debt (floating rate notes and commercial paper) to give it certainty over interest costs.

The Council uses hedge accounting to recognise any
fair value fluctuations in these swaps through this reserve within equity. Using hedge accounting prevents any significant movement in interest rate exposure significantly affecting the Council’s ability to meet its balanced budget requirements
The Group movement reflects the hedging related to Wellington International Airport Limited but adjusted to align with the Groups’ accounting policies.

This reserve reflects the accumulated fair value movement in the Council’s investment in Civic Financial Services Limited (Civic) and the Local Government Funding Agency. The decrease in the Civic investment in the 2018/19 year was due to the payment of a special dividend following the sale of Civic Assurance House. For further information on equity investments refer to Note 14: Other financial assets (page 223).

In the Group, Creative HQ, a controlled entity of WREDA, has small shareholdings in incubator and accelerator programme companies. These shareholdings are fair valued annually and any movement is held within this reserve until the disposal of the shares.

Note 30:
Restricted funds
Restricted funds are comprised of special reserves and funds that Council holds for specific purposes and trusts and bequests that have been bestowed upon the Council for the benefit of all Wellingtonians.

Table 64: Special reserves and funds

Opening balance
2020
$000

Additional
funds
2020
$000

Funds utilised
2020
$000

Closing Balance
2020
$000

Council

Controlled entities' reserve funds
Total Group – Special reserves and funds

3,242
17,629

96
4,128

(164)
(2,869)

3,174
18,888

Special reserves and funds	15,714	14,387	18,888	17,629	Animal Transfer Fund specifically for the transfer	
Trusts and bequests	468	478	1,139	1,404	of animals and a Conservation Fund to specifically	
Total restricted funds	16,182	14,865	20,027	19,033	support field conservation.	
					Analysis of movements in trusts and bequests	

Table 63: Restricted funds

Insurance reserve	11,198	1,981	(688)	12,491	from previously earned interest.	
Total Council	14,387	4,032	(2,705)	15,714		

City recovery fund (was City Growth Fund)	2,407	2,051	(2,017)	2,441	
Reserve purchase and development fund	782	–	–	782	

Nature and purpose, funding and utilisation City Recovery Fund (previously the City Growth fund) COVID-19
Council initially agreed on 9 April 2020 to the establishment of a City Recovery Fund (CRF) as part of Council’s pandemic response plan. On 27 May 2020, Council further agreed to a framework which saw the aggregation of three existing funds (City Growth Fund, the Capital of Culture activity and Destination Wellington) for the specific purpose of supporting and boosting the economic recovery in response to the impacts of COVID-19. It is expected that Council will decide whether to continue
the CRF for a second year or revert back to the legacy funds during the 2021/22 Annual Plan process.
The City Recovery Fund has a closing balance of
$2.441m with City Growth Fund funding for the
year of $1.787m (2019: $1.750m) provided from rates,
$0.157m from unused Capital of Culture activities and another $0.106m from Destination Wellington. During the year $2.017m (2019: $1.603m) was utilised.

Council
2020
$000

2019
$000

Group
2020
$000

2019
$000

Reserve purchase and development fund
This fund is used to purchase and develop reserve areas within the city. During the year no purchases were made.
Insurance reserve
This reserve came into effect in 2001 and allows the Council to meet the cost of claims that fall below deductible limits under Council’s insurance policies. Additions to the reserve of $1.981m (2019: $1.500m) were funded through rates as identified in the Annual Plan. During the year $0.688m (2019: $1.708m) was used to meet under-excess insurance costs.

Controlled entities’ reserve funds
The restricted funds of the controlled entities relate to the Wellington Museums Trust and the Wellington Zoo Trust:

The Wellington Museums Trust has six reserves;
a Capital reserve, a Capital E reserve, a Nairn Street Cottage collection reserve, a Wellington Museums collection reserve, a City Gallery reserve and a Wellington Museum Plimmer reserve. The two collection reserves are for the purpose of future museum acquisitions.
The Wellington Zoo Trust has two reserves; an

Additional funds and utilisation
Trusts and bequests receiving additional funds during the year were only those where interest totalling $0.017m (2019: $0.017m) has been applied in accordance with the original terms and conditions. Expenditure of $0.027m (2019: Nil) was made from the AW Newton bequest to a number of athletic, educational and arts related causes

Nature and purpose
The Council’s bequests and trusts have been generally provided for library, educational or environmental purposes.
The Wellington Zoo Trust has a number of bequests, trusts and capital grants made to it for specific purposes, which are held as restricted funds until utilised. Further information on these can be found in the Wellington
Zoo Trust Annual Report published on their website
– wellingtonzoo.com/about-us/about-our-zoo/
Charles Plimmer Bequest
This bequest is held and administered by the Public Trust and is primarily used for major beautification projects.
As the sole beneficiary, Wellington City Council applies for distribution of available funds for particular projects after consultation with the Plimmer family. The receipt and use of these funds are disclosed separately to record the generous contribution the bequest makes to the benefit of the city.
As at 31 August 2019, the value of the estate held by the Public Trust was $18.441m (31 August 2018: $16.680m) but the distributions to the beneficiary are only available from an agreed percentage of revenue generated. The distributions are only drawn down as required.
During the year:
Distributions recognised as revenue – $0.158m
Funds utilised towards the Newlands Park upgrade –
$0.159m, but $1.474m is expected to be spent over the next two years.

Statement of Cash Flows
For the year ended 30 June 2020

The cash and cash equivalents balance above equates to the cash and cash equivalents balance in the Statement of Financial Position.
Wellington City Council acts as a collection agency for Greater Wellington Regional Council (GWRC) by including additional rates and levies in its own billing process. Once collected, the monies are passed to GWRC. The budget assumes that the inflows and outflows will offset each other and are shown accordingly.
The Council has ring fenced funds of $52.537m (2019:
$42.755m) mainly relating to the housing upgrade project and waste activities. For more information see Note 23: Borrowings (page 250).
Cash and cash equivalents for the purposes of the cash flow statement comprises bank balances, cash on hand and short-term deposits with a maturity of three months

or less. The statement of cash flows has been prepared using the direct approach subject to the netting of certain cash flows. Cash flows in respect of investments and borrowings that have been rolled over under arranged finance facilities have been netted in order to provide more meaningful disclosures.
Operating activities include cash received from all non- financial revenue sources of the Council and Group and record the cash payments made for the supply of goods and services.
Investing activities relate to the acquisition and disposal of assets and investment revenue.
Financing activities relate to activities that change the equity and debt capital structure of the Council and Group and financing costs.

	Council		Group		
	Actual	Budget	Actual	Actual	Actual	
	2020	2020	2019	2020	2019	
	$000	$000	$000	$000	$000	
Cash flows from operating activities						
Receipts from rates – Council	316,718	326,123	308,800	316,718	308,800	
Receipts from rates – Greater Wellington Regional Council	70,418	68,912	67,067	70,418	67,067	
Receipts from activities and other revenue	144,334	120,915	150,295	168,958	192,299	
Receipts from grants and subsidies – Operating	8,035	6,886	9,214	14,241	4,822	
Receipts from grants and subsidies – Capital	26,837	25,481	30,201	26,977	31,004	
Receipts from investment property lease rentals	10,861	11,215	11,528	10,861	11,528	
Cash paid to suppliers and employees	(356,198)	(353,846)	(357,387)	(412,922)	(417,167)	
Rates paid to GWRC	(70,511)	(68,912)	(67,488)	(70,511)	(67,488)	
Grants paid	(42,711)	(39,476)	(38,516)	(14,809)	(11,722)	
Income tax paid	–	–	–	(9)	(123)	
Net GST (paid) / received	(1,110)	–	(938)	(1,027)	(1,196)	
Net cash flows from operating activities	106,673	97,298	112,776	108,895	117,824	

Cash flows from investing activities						
Dividends received	12,147	14,646	14,418	12,147	14,418	
Interest received	2,280	13	2,879	2,530	3,110	
Loan repayments	–	–	244	15	259	
Proceeds from sale of property, plant and equipment	18,111	13,000	814	18,111	818	
Proceeds from sale of Intangibles	837	–	195	837	195	
(Increase) / decrease in investments	(22,224)	–	(1,192)	(22,608)	(1,261)	
Purchase of investment properties	(42)	–	(73)	(42)	(73)	
Purchase of intangibles	(4,001)	(6,031)	(3,092)	(4,001)	(3,268)	
Purchase of property, plant and equipment	(211,748)	(242,851)	(170,049)	(212,986)	(172,119)	
Net cash flows from investing activities	(204,640)	(221,223)	(155,856)	(205,997)	(157,921)	

Cash flows from financing activities						
New borrowings	154,269	244,462	154,742	154,269	154,742	
Repayment of borrowings	(67,294)	(125,000)	(47,930)	(67,294)	(47,930)	
Interest paid on borrowings	(25,677)	(24,902)	(24,482)	(25,677)	(24,482)	
Net cash flows from financing activities	61,298	94,560	82,330	61,298	82,330	

Net increase/(decrease) in cash and cash equivalents	
(36,669)	
(29,365)	
39,250	
(35,804)	
42,233	
Cash and cash equivalents at beginning of year	135,246	160,425	95,996	149,089	106,856	
					
Cash and cash equivalents at end of year	98,577	130,660	135,246	113,285	149,089	

Statement of cash flows – Major budget variations
Cash flow budgeting is performed using various assumptions around the timing of events and any departure from these timings will affect the outcome against budget.
Significant variations from the cash flow budgets are as follows:

Net cash flows from operating activities were
$9.375m higher than budget, variances include:
$9.405m lower receipts from rates mainly due to a $5.3m increase in debtors reflecting the
$2.182m postponement of rates for instalment 4, due 1 June 2020, and the wider economic COVID-19 impact. Rates revenue was also affected by lower water meter consumption.
$23.419m higher revenue from activities and other revenue
$3.235m of increased grants paid which partially reflects financial assistance given in response to COVID-19, including additional funding of $0.504m to the Wellington Zoo and Zealandia

Net cash flows from investing activities were
$16.583m lower than budget, variances include:
$2.499m lower dividends received mainly due to a reduced Airport dividend
$5.111m higher proceeds from sales of Property, plant and equipment
$31.103m less spent on purchases of Property, plant and equipment due to the full capital expenditure programme not being completed
$22.224m increase in investments with $21m of extra term deposits greater than 3 months reflecting prefunding for debt maturities in 2020/21
Net cash flows from financing activities were $33.262m lower than budget mainly because:
$90.193m lower new borrowings due to lower than expected capital expenditure
$57.706m lower repayments of borrowings

The notes from pages 199 to 299 form part of and should be read in conjunction with the financial statements
The notes from pages 199 to 299 form part of and should be read in conjunction with the financial statements

Note 31:
Reconciliation of net surplus / (deficit) to net cash flows from operating activities
The net surplus / (deficit) from the Statement of Comprehensive Revenue and Expense is reconciled to the net cash flows from operating activities in the Statement of Cash Flows as follows:

Table 65: Reconciliation of net surplus / (deficit)	Council		Group		
to net cash flows from operating activities					
	2020
$000	2019
$000	2020
$000	2019
$000	

Net surplus / (deficit) for the period	
15,146	
(23,867)	
22,812	
(19,269)	

Add/(deduct) non-cash items:					
Vested assets	(7,599)	(13,110)	(7,599)	(13,110)	
Bad debts written off not previously provided for	6	132	13	136	
Depreciation and amortisation	118,067	116,121	119,503	117,504	
Impairment of property, plant and equipment	10,184	50,603	10,184	50,603	
Fair value changes in investment properties	(7,558)	(18,454)	(7,558)	(18,454)	
Other fair value changes	(6)	46	1	116	
Movement in provision for impairments of doubtful debts	161	(114)	188	(114)	
Tax expense/(credit)	–	–	(541)	250	
Non-cash movement in provisions	4,706	1,111	4,706	1,104	
Total non-cash items	117,961	136,335	118,897	138,035	

Add/(deduct) movement in working capital:1					
Exchange receivables and non-exchange recoverables	(39,448)	781	(38,424)	2,483	
Prepayments	9,486	(2,982)	9,515	(3,491)	
Inventories	(551)	287	(849)	215	
Exchange transactions, taxes and transfers payables	(7,632)	5,976	(9,765)	4,656	
Revenue in advance	229	(2,111)	2,066	(426)	
Employee benefit liabilities	1,614	(197)	1,449	188	
Provision for other liabilities	(1,160)	(9,306)	(850)	(9,235)	
Total working capital movement	(37,462)	(7,552)	(36,858)	(5,610)	

Add/(deduct) investing and financing activities:					
Net (gain)/loss on disposal of property, plant and equipment	433	613	447	458	
Net (gain)/loss on disposal of intangibles	(655)	225	(589)	225	
Net (gain)/loss on disposal of investment property	–	(163)	–	(163)	
Dividends received	(12,147)	(14,418)	(86)	(537)	
Interest received	(2,280)	(2,879)	(2,469)	(3,025)	
Tax paid and subvention receipts	–	–	(98)	(356)	
Interest paid on borrowings	25,677	24,482	25,677	24,482	
Share of equity accounted surplus in associates	–	–	(18,838)	(16,416)	
Total investing and financing activities	11,028	7,860	4,044	4,668	
Net cash flows from operating activities	106,673	112,776	108,895	117,824	

Excluding non-cash items

Other disclosures
Note 32:
Financial instruments
Financial instruments include financial assets (loans

Relevant significant accounting policies

and receivables or recoverables and financial assets at fair value through other comprehensive revenue and expense), financial liabilities (payables and borrowings) and derivative financial instruments.

Financial instruments are initially recognised on trade-date at their fair value plus transaction costs.
Subsequent measurement of financial instruments depends on the classification determined by the Group.
Financial Assets
Financial assets are classified as loans and receivables or financial assets at fair value through other comprehensive revenue and expense.
Loans and receivables comprise cash and cash equivalents, receivables or recoverables and loans and deposits.
Cash and cash equivalents comprise cash balances
and bank deposits with maturity dates of three months or less.
Receivables and recoverables have fixed or determinable payments. They arise when the Group provides money, goods or services directly to a debtor, and has no intention of trading the receivable or recoverable.
Loans and deposits include loans to other entities (including controlled entities and associates), and bank deposits with maturity dates of more than three months.

Financial assets in this category are recognised initially at fair value plus transaction costs and subsequently measured at amortised cost using the effective interest rate method. Fair value is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date for assets of a similar maturity and credit risk. Receivables or recoverables due in less than 12 months are recognised at their nominal value. A provision for impairment is recognised when there is objective evidence that the asset is impaired.

Financial instruments are classified into the categories outlined below based on the purpose for which they were acquired. The classification is determined at initial recognition and re-evaluated at the end of each reporting period.

As there are statutory remedies to recover unpaid rates, rates penalties and water meter charges, no provision has been made for impairment in respect of these receivables or recoverables.
Financial assets at fair value through other comprehensive revenue and expense primarily relate to equity investments that are held by the Group for long-term strategic purposes and therefore are not intended to be sold. Within the Group, small shareholdings are held in start-up companies, which are available for sale, until the companies mature or cease operations. Financial assets at fair value through other comprehensive revenue and expense are initially recorded at fair value plus transaction costs. They are
subsequently measured at fair value and changes, other than impairment losses, are recognised directly in a reserve within equity. On disposal, the cumulative fair value gain or loss previously recognised directly in
other comprehensive revenue and expense is recognised within surplus or deficit.
Financial assets are derecognised when the rights to receive cash flows have expired or have been
transferred and the Group has transferred substantially all of the risks and rewards of ownership.
Financial Liabilities
Financial liabilities include payables under exchange transactions, taxes, transfers and borrowings. Financial liabilities with duration of more than 12 months are recognised initially at fair value plus transaction costs and subsequently measured at amortised cost using the effective interest rate method. Amortisation is recognised within surplus or deficit. Financial liabilities with duration of less than 12 months are recognised at their nominal value.
On disposal any gains or losses are recognised within surplus or deficit.

Table 66 below, provides an analysis of the Group’s financial assets and financial liabilities by reporting category as described in the accounting policies:

Fair value
The fair values of all financial instruments equate or are approximate to the carrying amount recognised in the Statement of Financial Position.

Table 66: Financial Instruments by category

Financial assets Loans and receivables
Cash and cash equivalents Receivables and recoverables
Other financial assets	Council		Group		
	2020
$000

98,577
95,467
40,191	2019
$000

135,246
53,962
17,531	2020
$000

113,285
96,888
42,466	2019
$000

149,089
55,911
19,056	
Total loans and receivables	234,235	206,739	252,639	224,056	

Financial assets at fair value through other comprehensive revenue and expense
Other financial assets	

7,428	

6,633	

8,998	

8,497	
Total financial assets at fair value through other comprehensive revenue and expense	7,428	6,633	8,998	8,497	

Hedged derivative financial instruments
Derivatives designated as cash flow hedges	

–	

–	

–	

–	
Total hedged derivative financial instruments	–	–	–	–	

Total financial assets
Total non-financial assets	
241,663
8,134,908	
213,372
7,567,729	
261,637
8,339,414	
232,553
7,757,118	
Total assets	8,376,571	7,781,101	8,601,051	7,989,671	

Financial liabilities
Financial liabilities at amortised cost Exchange transactions and transfers payable Taxes payable
Borrowings	

57,417
8,185
775,931	

65,597
6,599
688,956	

60,635
8,458
775,979	

70,683
6,780
689,033	
Total financial liabilities at amortised cost	841,533	761,152	845,072	766,496	

Derivative financial instruments
Derivatives designated as cash flow hedges	

107,041	

68,138	

107,041	

68,138	
Total derivative financial instruments	107,041	68,138	107,041	68,138	

Total financial liabilities
Total non-financial liabilities	
948,574
86,814	
829,290
81,646	
952,113
94,494	
834,634
88,092	
Total liabilities	1,035,388	910,936	1,046,607	922,726	

Fair value hierarchy
For those financial instruments recognised at fair value in the Statement of Financial Position, the fair values are determined according to the following hierarchy:
Level 1 – Quoted market price – Financial instruments with quoted prices for identical instruments in
active markets.

Level 2 – Valuation technique using observable inputs – Financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets
and financial instruments valued using models where all significant inputs are observable.
Level 3 – Valuation techniques with significant non- observable inputs – Financial instruments valued using models where one or more significant inputs are not observable.

Table 67: Group hierarchy

Financial assets
Financial assets at fair value through other comprehensive revenue and expense
Derivative financial instruments Cash flow hedges

Financial liabilities
Derivative financial instruments Cash flow hedges	2020	2019	
	Level 1	Level 2	Level 3
$000	$000	$000

–	–	9,258

–	–	–

–	107,041	–	Level 1	Level 2	Level 3
$000	$000	$000

–	–	8,749

–	–	–

–	68,138	–	

Table 68: Reconciliation of fair value movements in Level 3
Financial assets at fair value through other comprehensive revenue and expense
Equity investments Opening balance – 1 July Purchases
Disposals Impairment
Loss on investment
Gains or losses recognised in other comprehensive revenue and expense	Council		Group		
	2020	2019	2020	2019	
	$000	$000	$000	$000	
	
6,633	
6,137	
8,749	
8,167	
	–	–	25	252	
	–	–	–	(95)	
	–	–	–	(46)	
	–	–	(296)	–	
	–	496	780	471	
Closing balance – 30 June	6,633	6,633	9,258	8,749	

The level 3 equity investments comprise the Group’s shareholdings in the Local Government Funding Agency $6.938m (2019: $6.156m), Civic Assurance $0.490m (2019: $0.477m), the Creative HQ shareholdings $1.570m (2019: $1.864m) and a legacy investment by Wellington Museum’s Trust of $0.260m (2019:$0.252m). Refer to Note 14: Other financial assets (page 223) for more details.

Financial risk management
As part of its normal operations, the Group is exposed to a number of risks. The most significant are credit risk, liquidity risk and market risk, which includes interest rate risk. The Group’s exposure to these risks and the action
that the Group has taken to minimise the impact of these risks is outlined below:

Credit risk

Liquidity risk
Liquidity risk refers to the situation where the Group may encounter difficulty in meeting obligations associated with financial liabilities. The Group maintains sufficient funds
to cover all obligations as they fall due. Facilities are maintained in accordance with the Council’s Liability

Contractual maturity
The following maturity analysis in Table 71 sets out the contractual cash flows for all financial liabilities that are settled on a gross cash flow basis. Contractual cash flows for financial liabilities include the nominal amount and

Table 69: Financial instruments with credit risk

Financial instruments with credit risk Cash and cash equivalents Receivables and recoverables
Other financial assets
Bank deposits – term > 3 months LGFA borrower notes
Loans to related parties – other organisations
Loans to external organisations	Council		Group		
	2020
$000

98,577
95,467

30,000
10,152
39
–	2019
$000

135,246
53,962

9,000
8,496
35
–	2020
$000

113,285
96,888

32,000
10,152
39
15	2019
$000

149,089
55,911

10,250
8,496
35
23	
Total financial instruments with credit risk	234,235	206,739	252,379	223,804	

Credit risk is the risk that a third party will default on its obligations to the Group, thereby causing a financial loss. The Group is not exposed to any material concentrations of credit risk other than its exposure within the Wellington region. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the Statement of Financial Position and the face

value of financial guarantees to related parties (refer Note 34: Contingencies (page 285). There is currently no liability recognised for these guarantees as the Group does not expect to be called upon for payment.
The Group’s maximum exposure to credit risk at the end of the reporting period is detailed in the following, Table 69.

Management Policy to ensure the Group is able to access
required funds.

interest payable.

Receivables and recoverables balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant.
The Group is exposed to credit risk as a guarantor of the LGFA’s borrowings. Further information about this exposure is explained in Note 34: Contingencies (page 285).

Credit quality of financial assets
The credit quality of financial assets that are neither past due or impaired can be assessed by reference to Standard and Poor’s credit ratings.

Table 70: Counterparties with credit ratings

Cash – registered banks
AA-
Short term deposits – registered banks
AA- A
Term deposits (greater than 3 months) – registered banks
AA- A
Term deposits – borrower notes – NZ LGFA
AA+	Council		Group		
	2020
$000

23,561

75,000
–

15,000
15,000

10,152	2019
$000

2,229

121,000
12,000

4,000
5,000

8,496	2020
$000

34,821

78,427
–

17,000
15,000

10,152	2019
$000

12,201

124,854
12,000

5,250
5,000

8,496	

Table 71: Contractual cash flows of	Council		Group		
financial liabilities excluding derivatives					
	2020
$000	2019
$000	2020
$000	2019
$000	
Contractual cash flows of financial liabilities excluding derivatives					
0–12 months	259,165	210,370	262,453	215,665	
1–2 years	92,374	79,430	92,394	79,478	
2–5 years	279,342	260,958	279,342	260,958	
More than 5 years	261,261	271,870	261,261	271,870	
Total contractual cash flows of financial liabilities excluding derivatives	892,142	822,628	895,450	827,971	

Represented by:					
Carrying amount as per the Statement of Financial Position	841,766	761,151	845,074	766,494	
Future interest payable	50,376	61,477	50,376	61,477	
Total contractual cash flows of financial liabilities excluding derivatives	892,142	822,628	895,450	827,971	

The following maturity analysis in Table 72, sets out the contractual cash flows for all financial liabilities that are settled on a net cash flow basis. Contractual cash flows for derivative financial liabilities are the future interest payable.

Table 72: Contractual cash flows	Council		Group		
of derivative financial liabilities					
	2020
$000	2019
$000	2020
$000	2019
$000	
Contractual cash flows of derivative financial liabilities					
0–12 months	15,253	10,894	15,253	10,894	
1–2 years	15,477	10,698	15,477	10,698	
2–5 years	40,262	27,468	40,262	27,468	
More than 5 years	40,507	24,146	40,507	24,146	
Total contractual cashflow of derivative financial liabilities	111,499	73,206	111,499	73,206	

Represented by:
Future interest payable	

111,499	

73,206	

111,499	

73,206	
Total contractual cash flows of derivative financial liabilities	111,499	73,206	111,499	73,206	

In addition to cash to be received in 2020/21 the Group currently has $120.000m (2019: $120.000m) in unutilised committed bank facilities available to settle obligations as well as $177.173m (2019: $205.000m) of cash, cash equivalents and receivables and is expected to have sufficient cash to meet all contractual liabilities as they fall due.
The Group is exposed to liquidity risk as a guarantor of all of LGFA’s borrowings. This guarantee becomes callable in the event of the LGFA failing to pay its obligations when they fall due. Information about this exposure is explained in Note 34: Contingencies (page 285).
The Group mitigates exposure to liquidity risk by managing the maturity of its borrowings programme within the following maturity limits as shown in Table 73.

Period	Minimum	Maximum	Actual	
0–3 years	15%	60%	49%	
3–5 years	15%	60%	21%	
More than 5 years	15%	60%	30%	

Table 73: Liquidity funding risk

Market risk
Market risk is the risk that the value of an investment will decrease, or a liability will increase due to changes in market conditions. The Group uses interest rate swaps in the ordinary course of business to manage interest rate risks. A Treasury Committee, headed by senior management personnel and the Council’s treasury
management advisors (presently PwC), provides oversight for financial risk management and derivative activities
and ensures any activities are in line with the Liability Management Policy which is formally approved by the Council as part of the Long-Term Plan (LTP).

Cash flow and fair value interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Group’s financial instruments will decrease due to changes in market interest rates. The Group is exposed to interest rate risk from its interest- earning financial assets and interest-bearing financial liabilities. The Group is risk averse and seeks to minimise exposure arising from its borrowing activities primarily by entering into interest rate swap arrangements to fix interest rates on its borrowings.
The Group manages its cash flow interest rate risk by using interest rate swaps. These have the economic effect of converting borrowings from floating rates to fixed rates. The Group uses interest rate swaps to maintain a required proportion of borrowing between  fixed  and  floating interest rates, using a corridor policy, as specified in the liability management policy.
The proportion of gross borrowing at a fixed interest rate for the period ending 30 June 2020 is 67 percent.

Table 75: Weighted effective interest rates

Investments
Cash and cash equivalents Bank deposits – term LGFA – borrower notes Loans to related parties

Borrowings
Bank loans Commercial paper Debt securities – fixed
Debt securities – floating
Derivative financial instruments – hedged	Council		Group		
	2020
%

0.41
2.59
0.95
–

4.30
0.49
3.01
0.94
3.73	2019
%

2.16
2.57
2.31
–

7.00
1.75
3.91
2.36
3.83	2020
%

0.38
2.58
0.95
–

4.30
0.49
3.01
0.94
3.73	2019
%

2.06
2.64
2.31
–

7.00
1.75
3.91
2.36
3.83	

Table 74 below shows the effect of the interest rate swaps at reducing the Council’s and Group's exposure to interest rate risk:

Given that the interest rate swaps have terms that match with the borrowings (short term bank facilities, commercial paper and debt securities), it is appropriate to include the effect of the interest rate swaps on the

borrowings interest rate and present the net effective interest rates for the underlying borrowings in Table 75 as follows.

The related party loan to the Wellington Regional Stadium Trust is on interest free terms.

Table 74: Interest rate volatility

Financial instruments subject to interest rate volatility – before effect of interest rate swaps
Cash and cash equivalents
Bank deposits – term greater than 3 months Commercial paper
Debt securities – floating rate notes	Council		Group		
	2020
$000

98,577
30,000
(68,000)
(642,000)	2019
$000

135,246
9,000
(85,000)
(553,500)	2020
$000

113,285
32,000
(68,000)
(642,000)	2019
$000

149,089
10,250
(85,000)
(553,500)	
Total financial instruments subject to interest rate volatility – before effect of interest rate swaps	
(581,423)	
(494,254)	
(564,715)	
(479,161)	

Effect of interest rate swaps in reducing interest rate volatility
Effect of Cash flow interest rate swaps – hedged	

454,000	

459,000	

454,000	

459,000	
Total effect of interest rate swaps in reducing interest rate volatility	454,000	459,000	454,000	459,000	
Total financial instruments subject to interest rate volatility – after effect of interest rate swaps	
(127,423)	
(35,254)	
(110,715)	
(20,161)	

These interest rate swaps have a nominal value which represents the value of the debt that they are covering (included above). This amount is not recorded in the financial statements; instead the fair value of these interest rate swaps is recognised. This represents the difference between the forecast current floating interest rate and the fixed swap interest rate discounted back to

present value. At 30 June 2020 the fair value of the interest rate swaps was -$107.041m (2019: -$68.138m). The liability represents the forecast extra cash flows the Council is expected to pay from locking in fixed interest rates higher than current market rates

Sensitivity analysis
While the Group has significantly reduced the impact of short-term fluctuations on the Group’s earnings through interest rate swap arrangements, there is still some exposure to changes in interest rates.

Table 77: Capital commitments

Approved and contracted – property, plant and equipment Approved and contracted – investment properties Approved and contracted – intangibles
Approved and contracted – share of associates
Approved and contracted – share of joint ventures	Council		Group		
	2020
$000

350,332
–
–
–
–	2019
$000

184,264
–
–
–
–	2020
$000

350,337
–
– 7
–	2019
$000

184,264
–
– 4
–	
Total capital commitments	350,332	184,264	350,344	184,268	

Table 76 below illustrates the potential surplus or deficit impact of a 1 percent change in interest rates based on the Group’s exposures at the end of the reporting period:

Note 33:
Commitments

Table 76: Sensitivity to interest rate risk	Group	
	
Note	2020
$000	
		+1%	-1%	+1%	-1%	
		Effect on Surplus or Deficit	Effect on Other Comprehensive	
		Revenue and Expense	
Financial assets			
Cash and cash equivalents	a	1,132	(1,132)	–	–	
LGFA – borrower notes	b	102	(102)	–	–	
Term deposits > 3 months	c	300	(300)	–	–	

Financial liabilities			
Derivatives – interest rate swaps – hedged	d	–	–	41,410	(46,021)	
Debt securities – floating rate notes	e	(2,390)	2,390	–	–	
Debt securities – fixed rate bonds	f	–	–	–	–	
Bank term loans	g	–	–	–	–	
Commercial paper	h	(170)	170	–	–	
Total sensitivity to interest rate risk	(1,026)	1,026	41,410	(46,021)	

The capital commitments in Table 77 above, represent signed contracts in place at the end of the reporting period.
The contracts will often span more than one financial year and may include capital expenditure carried forward from 2019/20 to future years.

Cash and cash equivalents
Group funds are in a number of different registered bank accounts with interest payable on the aggregation of all accounts. While most of the funds are held on short-term deposit, they are subject to interest rate movement on any subsequent reinvestment. A movement in interest rates of plus or minus 1 percent has an effect on interest revenue of $1.132m accordingly.
LGFA borrower notes
The Group holds $10.152m of borrower notes which are investments held by LGFA as part of their lending policy. They are subject to quarterly interest rate resetting. A movement in interest rates of plus or minus 1 percent has an effect on interest revenue of $0.152m accordingly.
Bank term deposits > than 3 months
Bank deposits greater with bank maturities greater than 3 months are subject to interest rate movement on any subsequent reinvestment. A movement in interest rates of plus or minus 1 percent has an effect on interest revenue of $0.300m accordingly.
Derivatives – hedged interest rate swaps
Derivatives include hedged interest rate swaps with a fair value totalling -$107.041m. A movement in interest rates of plus 1 percent has an effect on increasing the unrealised value of the hedged interest rate swap liabilities by
$41.410m. A movement in interest rates of minus 1 percent has an effect on reducing the unrealised value of the hedged interest rate swap liabilities by $46.021m.

Debt securities – floating rate notes
Debt securities at floating rates total $642.000m. The full exposure to changes in interest rates has been reduced because the Group has $403.000m of this debt at fixed rates through interest rate swaps. A movement in interest rates of plus or minus 1 percent has an effect on the interest expense of $2.390m accordingly.
Debt Securities – fixed rate bonds
The Group has $60.000m of fixed rate bonds which are not exposed to interest rate changes.
Bank Loan
The Group, through the Council’s joint operations with Porirua City Council has a bank term loan of $5.931m. This loan consists of various loans provided to the joint operations through Porirua City Council borrowing. The interest rate applied is fixed at 4.3 percent for the joint venture partners and is not subject to interest rate risk.
Commercial paper
The Group has a Commercial Paper programme which is subject to floating rates and totals $100.000m of which only $68.000m is presently utilised. The full exposure
to changes in interest rates has been reduced because the Group has $51.000m of this debt at fixed rates through interest rate swaps. A movement in interest rates of plus or minus 1 percent has an effect on the interest expense of $0.170m accordingly.

Lease commitments
Operating leases – Group as lessee
The Group leases certain items of plant, equipment, land and buildings under various non-cancellable operating lease agreements.
The lease terms are between 2 and 21 years and the majority of the lease agreements are generally renewable at the end of the lease period at market rates.

Table 78: Non-cancellable operating	Council		Group		
lease commitments as lessee					
	2020
$000	2019
$000	2020
$000	2019
$000	
Plant and equipment					
Not later than one year	–	–	205	135	
Later than one year and not later than five years	–	–	159	154	
Later than five years	–	–	–	–	

Land and buildings					
Not later than one year	6,915	4,774	8,464	7,138	
Later than one year and not later than five years	13,820	13,304	16,740	16,246	
Later than five years	1,316	75	1,316	75	
Total non-cancellable operating lease commitments as lessee	22,051	18,153	26,884	23,748	

The amount of minimum payments for non-cancellable operating leases is recognised as an expense in Note 7: Expenditure on operating activities (page 208).

Relevant significant accounting policies
Leases where the lessor retains substantially all the risks and rewards of ownership of the leased items are classified as operating leases. Payments made under operating leases are recognised within surplus or deficit on a straight-line basis over the term of the lease. Lease incentives received are recognised within surplus or deficit over the term of the lease as they form an integral part of the total lease payment.
The future expenditure committed by these leases is analysed as follows in Table 78:

Operating leases – Group as lessor
The Group has also entered into commercial property leases of its investment property portfolio and other land and buildings.
The land and buildings held for investment purposes are properties which are not held for operational purposes and are leased to external parties.
Ground leases are parcels of land owned by the Group

Table 79: Non-cancellable operating	Council		Group		
lease commitments as lessor					
	2020
$000	2019
$000	2020
$000	2019
$000	
Investment properties					
Not later than one year	9,164	10,391	9,164	10,391	
Later than one year and not later than five years	29,862	35,488	29,862	35,488	
Later than five years	44,046	52,012	44,046	52,012	

Land and buildings					
Not later than one year	6,202	5,683	6,202	5,683	
Later than one year and not later than five years	10,394	10,204	10,394	10,204	
Later than five years	13,763	10,401	13,763	10,401	
Total non-cancellable operating lease commitments as lessor	113,431	124,179	113,431	124,179	

in the central city or on the waterfront that are leased to other parties who own the buildings situated on the land. The leases are generally based on 21-year perpetually renewable terms. As these parcels of land are held for investment purposes the leases are charged on a commercial market basis.

Commitments to related parties

The land and buildings not held for investment purposes are either used to accommodate the Group’s operational activities or are held for purposes such as road widening, heritage, or are being monitored for compliance reasons. In some cases, parts of these assets are leased to external parties on a commercial basis. The terms of these commercial leases generally range from 1 to 15 years.
Relevant significant accounting policies
Rental revenue is recognised on a straight-line basis over the lease term.
The committed revenues expected from these lease portfolios are analysed as follows in Table 79.

Note 34:

Table 80: Contingent liabilities

Uncalled capital – LGFA Other legal proceedings
Share of associates' and joint venture's contingent liabilities
Share of joint operations' contingent liabilities	Council		Group		
	2020
$000

1,866
89
–
–	2019
$000

1,866
299
–
–	2020
$000

1,866
89
–
–	2019
$000

1,866
299
–
–	
Total contingent liabilities	1,955	2,165	1,955	2,165	

Contingencies

NZ Local Government Funding Agency Limited (LGFA)
Council is one of 64 local authority shareholder, borrower and guarantor councils of the LGFA. Any non-shareholder council that borrows in aggregate NZ$20m or more from LGFA must be a guarantor. In this regard Council has uncalled capital of $1.866m. When aggregated with the uncalled capital of other shareholders, $20m is available in the event that an imminent default is identified. Also, together with the
other shareholders and guarantors, Council is a guarantor of all of LGFA’s borrowings. At 30 June 2020, LGFA had borrowings totalling $11,908m (2019: $9,531m).
Financial reporting standards require Council to recognise the guarantee liability at fair value. However, the Council has been unable to determine a sufficiently reliable fair value for the guarantee, and therefore has not recognised

Structural defect claim
A large and novel claim alleging a breach of duty to a tenant of a commercial building was filed in August
2019. The claim is at an early stage. Council’s current estimated financial exposure for this claim is $50,000 being the insurance excess payable, which is included in the total above.
Unquantified contingent liabilities
Holiday Pay remediation
Council has completed an independent external audit to assist in determining our level of compliance with
the Holidays Act. Through this process we have found that we have paid some payment types with incorrect Holidays Act configurations. However, we are yet to do the work to understand the level of remediation required.
Other claims

The Council and Group have no commitments to key management personnel beyond normal employment obligations.

a liability. The Council considers the risk of LGFA defaulting on repayment of interest or capital to be very low on the basis that we are not aware of any local authority, which
is a member of the LGFA, that has had debt default events in New Zealand; and local government legislation would enable local authorities to levy a rate to recover sufficient funds to meet any debt obligations if further funds were required. Council considers that even if it was called upon to contribute the cost would not be material.
Other legal proceedings
Other legal proceedings are current claims against the Council and Group as a result of past events which are currently being contested. The amounts shown reflect potential liability for financial reporting purposes only and do not represent an admission that any claim is valid. The outcome of these remains uncertain at the end of the reporting period. The maximum exposure to the Group is anticipated to be less than $0.089m.

There are various other claims that the Council and Group are currently contesting which have not been quantified due to the nature of the issues, the uncertainty of the outcome and/or the extent to which the Council and Group have a responsibility to the claimant. The possibility of any outflow in settlement in these cases
is assessed as remote.
The uncertainty that existed at the end of the current period and previous periods relating to a defective product has now been removed with a notice of discontinuance signed on 3 September 2020, with the Council no longer subject to this legal proceeding and no settlement was involved.
Contingent assets
The Council and Group have no contingent assets that can be quantified as at 30 June 2020 (2019: $Nil)

COVID-19 support for related parties
Wellington International Airport Limited
As part of its COVID-19 pandemic response, Council agreed on 23 April 2020 to provide financial support to Wellington International Airport Limited in proportion to its 34 percent equity holding, if required. Along with Infratil Limited, who own the remaining 66 percent, the two shareholders will jointly provide an equity underwrite of up to nearly $75.76 million. Council’s share would be up to $25.76m and Infratil’s $50m. The facility will be able to be drawn by WIAL, if required, through the issue of redeemable preference shares.

Table 81: Joint operations
Wastewater treatment plant – Porirua City Council

Interest Nature of business 2019
27.60% Owns and operates a wastewater treatment plant
and associated trunk sewers and pumping stations that provide services to Wellington City’s northern suburbs.

 	of the plant allocated to the two councils.	

Ownership of the assets is in proportion to the capacity

Spicer Valley Landfill – Porirua City Council

21.50% Owns and operates a sanitary landfill that provides services to Wellington City’s northern suburbs. Ownership

 	of Porirua City and the area of the former Tawa Borough.	

of the assets is in proportion to the ratio of the populations

21.50%

27.60%

Interest 2020

The actions of the shareholders ensure the Airport is soundly financed to meet all of its obligations and maintain the support of its lenders over the next two years as it recovers from the significant impacts of

Note 35:
Joint Operations
The Council has significant interests in the following joint operations. Both of these are domiciled and operate in New Zealand. Porirua City Council operates these joint

operations under an agreement which provides that all assets of the joint operation are owned by the two councils as tenants in common.

COVID-19 on the airline industry.

Wellington Regional Stadium Trust (WRST)

The end of the reporting period for the joint operations is 30 June.
Relevant significant accounting policies

As a direct response to the COVID-19 pandemic, Council agreed, on 21 July 2020, to a joint loan facility between Council and Greater Wellington Regional Council to be made available to WRST. The loan facility to be used, if required, to fund operating deficits resulting from the impact of COVID-19 and to provide funding for the capital works required to continue with the strengthening of the Fran Wilde walkway. This loan is an unsecured facility of up to $4.2m divided equally between the lenders with a fixed interest rate of 3.0 percent and is interest free for the first two years upon being drawn down.
Council Controlled entities
As part of the Annual Plan approval on 21 July 2020, Council agreed to an increase in the support for Council Controlled Organisations with a ‘letter of comfort’ and provision for additional grant funding of up to $5.000m, noting that this will only be distributed based on the net impact from reduced revenues directly as a result of COVID-19.

For joint operations the Council has a liability in respect of its share of joint operational deficits and liabilities, and shares in any operational surpluses and assets. The Council’s proportionate interest (eg. 21.5 percent of the
Spicer Valley landfill) in the assets, liabilities, revenue and expenditure is included in the financial statements of the Council and Group on a line-by-line basis.

The Council’s and Group’s share of the joint operations’ capital commitments is $Nil (2019: $Nil) and contingent liabilities is $Nil (2019: $Nil).

Contingent liabilities and contingent assets
Contingent liabilities and contingent assets are disclosed at the point at which the contingency is evident. Contingent liabilities are disclosed if the possibility they will crystallise is not remote.
Contingent assets are disclosed if it is probable the benefits will be realised.

Relevant significant accounting policies

Note 36:
Related party disclosures

Related parties arise where one entity has the ability to affect the financial and operating policies of another through the presence of control or significant influence. Related parties include all members of the Group (controlled entities, associates and joint ventures) and key management personnel.
Key management personnel include the Mayor and Councillors as elected members of the governing body of the Council reporting entity, the Chief Executive and all members of the Executive Leadership Team, being key advisors to the Council and Chief Executive.

Relevant significant accounting policies

Key management personnel
In this section, the Council discloses the remuneration and related party transactions of key management personnel. The remuneration payable to key management personnel of the Group’s other entities is disclosed separately within their individual financial statements and is not included in Table 82 below.

Material related party transactions – key management personnel
During the year key management personnel, as part of normal local authority relationships, were involved in transactions with the Council such as payment of rates and purchases of rubbish bags or other Council services.
These transactions were on normal commercial terms. Except for these transactions no key management personnel have entered into related party transactions with the Group.

The Mayor and Councillor’s disclose their personal interests in a register available on the Council website.
There are no commitments from Council to key management personnel.

Material related party transactions – structured entities
NZ Local Government Funding Agency Limited (LGFA)

Table 82: Remuneration paid to key management personnel

Council Members
Remuneration
Chief Executive and Executive Leadership Team
Remuneration	Council		
	2020
$

1,789,623

2,681,193	2019
$

1,611,660

2,017,449	
Total remuneration paid to key management personnel	4,470,816	3,629,109	

The LGFA was incorporated on 1 December 2011 and was established to facilitate the efficient, and cost effective, raising of debt funding for local government authorities. There are  currently  30  regional,  district and city councils  throughout  New  Zealand  that  own 80 percent of the issued capital, with the Government holding the remaining 20 percent. The Council became
an establishment shareholder in this Council Controlled Trading Organisation (CCTO) and currently has an investment of $1.866m representing 8.3 percent of paid-up capital.

During the year ending 30 June 2020 Council drew down new borrowings of $123.500m and repaid $20.000m.
Interest expense was paid quarterly in arrears on these borrowings and interest revenue of $0.033m was received on a borrower note on maturity. Council received a dividend of $0.086m as a shareholder.
Wellington International Airport Limited
COVID-19
Support for an underwrite of additional equity, if required. For more information refer to Note 34: Contingencies (page 285).

As at 30 June 2020 key management personnel comprised of 23 individuals: 15 elected members or 15 fulltime equivalents (2019: 15) and 8 executive

Following the COVID-19 crisis, ELT members, in order to collectively demonstrate their commitment to the city’s pandemic response, voluntarily agreed to a 10 percent

Material related party transactions – unstructured entities
Financial information relating to the Council’s interests in unstructured entities is provided in Tables 83 and 84 below:

Basin Reserve Trust (BRT)

leaders or 8 fulltime equivalents (2019: 6).
During the year several Executive Leadership Team (ELT) members including the Chief Executive left Council and new appointments were made or are pending as at 30 June 2020. In the interim period a number of other senior managers were given acting roles to provide cover. The number of ELT members has also increased from the previous year reflecting structural changes within the organisation. The financial impact of this increase in numbers is reflected in the increased total remuneration shown in the table above.

salary sacrifice from 10 April to 31 December 2020.

Table 83: Basin Reserve Trust	2020
$000	2019
$000	
Summarised financial information of unstructured entity			
Total assets	777	836	
Total liabilities	(194)	(259)	
Net assets	583	577	

Revenue	
1,605	
957	
Expenses	(1,599)	(980)	
Surplus / (deficit)	6	(23)	

For further disclosure of the remuneration payable to the Mayor, Councillors and the Chief Executive refer to Note 37: Remuneration and staffing (page 293).

The Basin Reserve Trust was established on 24 February 2005 to manage, operate and maintain the Basin Reserve. The Trust was jointly created with Cricket Wellington Incorporated (CWI). Wellington City Council and CWI each appoint two of the four trustees. Wellington City Council does not have an equity investment in the Trust but has influence over the Trust through the appointment of

trustees and receives benefits from the complementary activities of the Trust in alignment with the Council’s objectives.
During the year ending 30 June 2020 Council contributed
$0.680m (2019: $0.667m) to fund the core operations of the Trust.

Wellington Regional Stadium Trust (WRST)
Wellington Regional Stadium Trust was jointly created by Wellington City Council and Greater Wellington Regional Council. Wellington City Council does not
have an equity investment in the Trust but has influence over the Trust through the appointment of trustees and receives benefits from the complementary activities
of the Trust in alignment with the Council’s objectives.
Council holds a $15m limited recourse loan to WRST which, is unsecured, with no specified maturity and at no interest. The loan is not repayable until all other debts are

extinguished. On maturity of the initial WRST membership underwrite, the unpaid interest was converted to a
$0.395m advance repayable after all other advances made by the Council and Greater Wellington Regional Council.
During the year ending 30 June 2020 Council transacted directly with WRST to the amount of $0.373m (2019:
$0.840m) as part of the original $5.000m funding grant recognised in 2016/17 for the upgrade of the concourse.
To date Council has paid $2.043m with $2.957m remaining.

During the year the Council has entered into transactions with its controlled entities. These transactions disclosed are within the normal course of business. The nature of these intra-group transactions and the outstanding balances at the year-end are as follows in Table 86.

2020	2019	
$000	$000	

36	
42	
173	172	
1,442	1,440	
27	117	
342	908	
2,020	2,679	

1,262	
1,007	
9,300	9,110	
12,610	12,178	
3,680	3,320	
26,852	25,615	

23	
17	
–	71	
264	68	
5,086	6,055	
1,244	1,902	
6,617	8,113	

7	
2	
52	52	
156	156	
–	1	
179	902	
394	1,113	

–	
27	
5	5	
75	238	
229	109	
309	379	

Table 86: Intra group transactions and balances – Controlled entities
Revenue received by Council for services provided to:
Karori Sanctuary Trust Wellington Cable Car Limited Wellington Museums Trust
Wellington Regional Economic Development Agency Wellington Zoo Trust

Table 84: Wellington Regional Stadium Trust	2020
$000	2019
$000	
Summarised financial information of unstructured entity			
Total assets	96,032	97,941	
Total liabilities	(6,874)	(6,712)	
Net assets	89,158	91,229	

Revenue	
11,262	
16,038	
Expenses	(13,333)	(14,296)	
Surplus / (deficit)	(2,071)	1,742	

Grant funding paid by Council for the operations and management of:
Karori Sanctuary Trust Wellington Museums Trust
Wellington Regional Economic Development Agency Wellington Zoo Trust

COVID-19
A new joint loan facility was agreed, if required. Refer to Note 34: Contingencies for more information (page 285).
Intra group transactions and balances
During the year the Council has entered into transactions with its joint operation partner Porirua City Council. These transactions disclosed are within the normal course of business. The nature of these intra-group transactions and the outstanding balances at the year-end are as follows in Table 85.

Expenditure payments made by Council for services provided by:
Karori Sanctuary Trust Wellington Cable Car Limited Wellington Museums Trust
Wellington Regional Economic Development Agency Wellington Zoo Trust

Current receivables and recoverables owing to the Council from:

Table 85: Intra group transactions and balances – Joint operation
Expenditure incurred by the Council to fund the operation and management of:
Porirua – waste water treatment plant

2019

2020
$000

1,850

$000

2,016

Karori Sanctuary Trust Wellington Cable Car Limited Wellington Museums Trust
Wellington Regional Economic Development Agency Wellington Zoo Trust

Current payables owed by the Council to: Wellington Cable Car Limited Wellington Museums Trust
Wellington Regional Economic Development Agency Wellington Zoo Trust

Current receivables, recoverables and payables
The receivable, recoverable and payable balances are non-interest bearing and are to be settled with the relevant entities on normal trading terms and conditions.

Payments to controlled entities
The total payments to controlled entities are $33.469m (2019: $33.056m) when the grant funding of $26.852m (2019: $25.615m) and expenditure for services provided to Council of $6.617m (2019: $8.113m) are combined.

During the year the Council has entered into several transactions with its associates and joint venture. These transactions disclosed are within the normal course of business. The nature of these intra-group transactions and the outstanding balances at the year-end are as follows in Table 87.

2020	2019	
$000	$000	

12,061	
13,881	

2,536	
–	

92	
89	
1,205	839	
1,297	928	

47	
32	
93,307	57,965	
93,354	57,997	

26	
–	
333	212	
359	212	

6,945	
1,754	

Table 87: Intra group transactions and balances – Associates and joint venture
Dividend received from:
Wellington International Airport Limited

Proceeds from Sale of land and buildings:
Wellington International Airport Limited

Revenue received by Council for services provided to: Wellington International Airport Limited Wellington Water Limited

Expenditure payments made by Council for services provided by:
Wellington International Airport Limited Wellington Water Limited

Current receivables and recoverables owing to the Council from:
Wellington International Airport Limited Wellington Water Limited

Current payables owed by the Council to:
Wellington Water Limited

Current receivables, recoverables and payables
The receivable, recoverable and payable balances are non-interest bearing and are to be settled with the relevant entities on normal trading terms and conditions.

Note 37:
Remuneration and staffing
Mayoral and Councillor remuneration
Remuneration
The following people held office as elected members of the Council’s governing body, during the reporting period. The total remuneration attributed to the Mayor and Councillors during the year from 1 July 2019 to 30 June 2020 was $1,789,623 (2019: $1,611,660) and is broken down and classified as follows in Table 88.

Monetary Remuneration	Non-monetary
Remuneration

Total 2020

Salary	Allowances

Total monetary remuneration
Total non-monetary remuneration

1,702,218
87,405

Present Council members	$	$	$	$	
Foster, Andy (Mayor)	154,102	200	5,827	160,129	

Calvert, Diane	
106,573	
300	
5,827	
112,700	
Condie, Jenny	76,581	100	4,059	80,740	
Day, Jill	118,926	300	5,827	125,053	
Fitzsimons, Fleur	106,573	300	5,827	112,700	
Foon, Laurie	76,581	100	4,059	80,740	
Free, Sarah	118,732	300	5,827	124,859	
Matthews, Rebecca	76,581	100	4,059	80,740	
O'Neill, Teri	76,581	100	4,059	80,740	
Pannett, Iona	108,779	300	5,827	114,906	
Paul, Tamatha	76,581	100	4,059	80,740	
Rush, Sean	76,581	100	4,059	80,740	
Sparrow, Malcolm	107,826	300	5,827	113,953	
Woolf, Simon	106,573	300	5,827	112,700	
Young, Nicola	106,573	300	5,827	112,700	

Previous Council members
Lester, Justin (former Mayor)	

54,760	

–	

1,768	

56,528	
Calvi-Freeman, Chris	29,823	200	1,768	31,791	
Dawson, Brian	29,823	200	1,768	31,791	
Gilberd, Peter	29,823	200	1,768	31,791	
Lee, David	29,823	200	1,768	31,791	
Marsh, Simon	29,823	200	1,768	31,791	
Total remuneration paid to council members	1,698,018	4,200	87,405	1,789,623	

Table 88: Elected Council remuneration

Salary
The Remuneration Authority is responsible for setting the remuneration levels for elected members (Clause 6, Schedule 7 of the Local Government Act 2002). The Council’s monetary remuneration (salary) detailed above was determined by the Remuneration Authority. As permitted under the Authority’s guidelines the Council has chosen for its elected members to receive an annual salary for the 2019/20 financial year rather than the alternative option of a combination of meeting fee payments and annual salary.
Allowances – internet services and mobile phones
Councillors are able to choose either of the following two options:
The payment of a communication allowance of up to $400 per annum (applicable from the start of the new triennium) or the reimbursement of any Council related communication costs, over and above any communication costs they would normally incur,
payable on receipt of the appropriate documentation required under the provisions of the Remuneration Authority’s determination.
The level of all allowances payable to the Council’s elected members has been approved by the Remuneration Authority and is reviewed by the Authority on an annual basis. The Remuneration Authority does permit Council to provide the Mayor with a vehicle for full private use, which is a taxable benefit and the current Mayor has taken up this option.
Non-monetary
In addition, the Mayor and Councillors receive non- monetary remuneration (benefit) in relation to car parking spaces provided, regardless of whether they elect to use these or not.
The Councillors have shared office and working space available for use, and access to phones and computers. Professional indemnity and trustee liability insurance is also provided to Councillors against any potential legal litigation which may occur while undertaking Council business.

COVID-19
In response to the pandemic the Mayor and Councillors agreed to a 10 percent pay reduction. However, because Local Government elected members pay is determined by the independent Remuneration Authority and set in legislation, they therefore pledged to voluntarily donate 10 percent of their pay to charities of their choice. The Remuneration Authority have subsequently agreed to reduce some members’ salaries for the period from
09 July 2020 to 06 January 2021.

Remuneration of elected members comprises any money, consideration or benefit received or receivable or otherwise made available, directly or indirectly, during the reporting period but does not include reimbursement of authorised work expenses or the provision of work-related equipment such as cell phones and laptops.

Relevant significant accounting policies

Community Boards
The Council has two community boards – the Tawa Community Board and the Makara/Ohariu Community Board. Remuneration paid to the elected members of these boards is as follows in Table 89.

Table 89: Community Board
Member remuneration	
Salary	Allowances	
Other	Total 2020	
	$	$	$	$	
Tawa Community Board				
Present Board members				
Parkinson, Robyn (Chair)	15,290	90	–	15,380	
Herbert, Richard (Deputy Chair)	12,334	225	–	12,559	
Hansen, Graeme	9,405	–	–	9,405	
Knight, Steph	6,476	–	–	6,476	
Lacy, Jackson (includes Youth Council attendance fee)	6,476	–	270	6,746	
Scott, Anna	6,476	–	–	6,476	
Day, Jill (see Councillor remuneration above)				
Sparrow, Malcolm (see Councillor remuneration above)				
Previous Board members				
Lucas, Margaret (Deputy Chair)	2,929	–	–	2,929	
Langham, Liz	2,929	–	–	2,929	
Marshall, Jack	2,929	–	–	2,929	
Makara-Ohariu Community Board				
Present Board members				
Apanowicz, John (Chair)	7,961	90	–	8,051	
Grace, Christine (Deputy Chair)	6,184	225	–	6,409	
Hoskins, Darren	4,716	–	–	4,716	
Renner, Chris	4,716	–	–	4,716	
Rudd, Wayne	4,716	–	–	4,716	
Todd, Hamish	4,716	–	–	4,716	
Previous Board members				
Liddell, Judy	1,469	–	–	1,469	
Total remuneration to community board members	99,722	630	270	100,622	
A technology allowance of $45 per month is available to the chair of both the Tawa and Makara/Ohariu Community Boards. This allowance can be taken as either an allowance or as an actual expense reimbursement.

Chief Executive’s remuneration
The Chief Executive of the Council was appointed in accordance with section 42 of the Local Government Act 2002.
Table 90 below, shows the total remuneration of the Chief Executive paid or payable for the year ended 30 June 2020.
Under the terms of the agreement, the Chief Executive of the Council chooses how they wish to take their remuneration package (salary only or a combination
of salary and benefits).

The remuneration package for the Chief Executive is a total of $436,664 (2019: $428,160)
During the year Kevin Lavery completed his contract with Council at the end of March 2020 and Barbara McKerrow, the Chief Operating Officer, was appointed as the replacement Chief Executive. Barbara began acting in the role from 3 February 2020 before assuming full control from 2 March 2020 and hence the total remuneration paid for the role is for greater than

Table 92: Remuneration bands	Council	
		
	2020	
Remuneration bands		
The number of employees receiving total annual remuneration of less than $60,000 Of the 991 employees in this band, 640 are part-time or casual	991	

The number of employees receiving total annual remuneration of more than $60,000 in bands of $20,000		
$60,000 – $79,999.99	276	
$80,000 – $99,999.99	254	
$100,000 – $119,999.99	127	
$120,000 – $139,999.99	81	
$140,000 – $159,999.99	35	
$160,000 – $179,999.99	21	
$180,000 – $199,999.99	13	
$200,000 – $239,999.99*	7	
$240,000 – $299,999.99*	6	
$300,000 – $439,999.99*	4	
Total employees	1,815	

12 months. The 10 percent salary sacrifice as discussed in Note 36: Related party disclosures, was applied to the remuneration paid from 10 April to 30 June 2020.

Employee numbers and remuneration bands
Table 91 below, identifies the number of full-time employees as at the of the reporting period and the full-time equivalent number of all other part-time, fixed term and casual employees. Tables 92 and 93 identify the breakdown of remuneration levels of those employees into various bands.

Table 91: Employee numbers and remuneration bands

Full-time and full-time equivalent employee numbers
Full-time employees (based on a 40 hour week) as at 30 June Full-time equivalents for all other non full-time employees	Council		
	2020

1,128
263	2019

1,080
260	
Total employees	1,815	1,797	

Table 90: Remuneration of the Chief Executive

Kevin Lavery (1 July 2019 to 31 March 2020)
Salary
Motor vehicle park (ended 31 January 2020)

Barbara McKerrow (from 2 March to 30 June 2020)
Salary	Council		
	2020
$

326,197
1,759

134,578	2019
$

425,160
3,000

–	
Total remuneration of the Chief Executive	462,534	428,160	

Severances
In accordance with Schedule 10, section 33 of the Local Government Act 2002, the Council is required to disclose the number of employees who received severance payments during the year and the amount of each severance payment made.
Severance payments include any consideration (monetary and non-monetary) provided to any employee in respect of the employee’s agreement to the termination of their employment with the Council. Severance payments exclude any final payment of salary, holiday pay and superannuation contributions or other contractual entitlement.

For the year ending 30 June 2020 the Council made severance payments to 13 employees totalling $405,662 (2019: 19 employees, $444,991).
The individual values of each of these severance payments are: $41,627; $19,498; $10,495; $26,625; $110,074; $7,574;
$49,084; $60,742; $5,750; $7,711; $5,529; $14,987;
$21,747; $3,288; $20,931

Table 93: Remuneration bands

Remuneration bands
The number of employees receiving total annual remuneration of less than $60,000

The number of employees receiving total annual remuneration of more than $60,000 in bands of $20,000
$60,000 – $79,999.99
$80,000 – $99,999.99
$100,000 – $119,999.99
$120,000 – $139,999.99
$140,000 – $159,999.99
$160,000 – $179,999.99
$180,000 – $199,999.99
$200,000 – $239,999.99*
$240,000 – $339,999.99*
$340,000 – $439,999.99*
Total employees

Council

2019

1,050

260
223
116
70
35
19
10
6
6
2
1,797

Of the 1815 (2019: 1,797) individual employees,
687 (2019: 717) work part-time or casually.
Total annual remuneration has been calculated to include any non-financial benefits and other payments in excess of normal remuneration such as the employer KiwiSaver contribution.
*If the number of employees for any band was 5 or less then we are legally required to combine it with the next highest band. This means that some rows span different bands across the two years shown.
Council has resolved that in addition to legislative requirements to disclose the above bandings it has also included the 2 lowest remuneration grades.

Table 94: Lowest remuneration grades

	Salary Range	2020	
Q (Living Wage)	$44,113	344	
9	$44,133–$57,602	412	
The current living wage rate for Council is $21.15 per hour. Each year the living wage rate for Council will be reviewed in accordance with the latest Living Wage rate announced/ published by Living Wage Aotearoa.

Note 38:
Events after the end
of the reporting period
On 20 October 2020, the Council agreed to a settlement for its insurance claim related to the Civic Administration Building (CAB), which covers both the repair costs and the relocation costs. The amount of this settlement was
$38.0m and an amount of $33.0m has been included within insurance proceeds revenue and receivables and recoverables for the year ended 30 June 2020 being the
$38.0m settlement amount less the deductible of $5.0m.
The financial impact of COVID-19 to Council was significant as outlined in the separate disclosure on page 195. The impact has continued after 30 June 2020, with measures such as deferred payments for the rates instalment 1, due 1 September and other financial assistance measures such as additional grants which may or may not be required.
Despite the brief return to Alert Level 2 in August 2020 Council has been able to operate relatively as normal, since first returning to Alert Level 1 in June 2020. The on-going financial impacts of COVID-19 will be disclosed in the 2020/21 Annual Report.

Financial prudence

The government has introduced the Local Government (Financial Reporting and Prudence) Regulations 2014 which has a series of measures and benchmarks, disclosed in the following pages.
Readers are urged to read the commentary and explanations provided to give context to the

Annual Report disclosure statement for year ending 30 June 2020
What is the purpose of this statement?
The purpose of this statement is to disclose the council’s

Rates affordability benchmark
The council meets the rates affordability benchmark if –
Its actual rates revenue equals or is less than each quantified limit on rates; and
Its actual rates increases equal or are less than each quantified limit on rates increases.

information, as it is not always possible to compare Wellington City Council’s results with other councils due to their size, location and provision of services.
During the 2018–28 Long-Term Plan process and with consultation with ratepayers, the Council revised
the number of benchmarks and removed measures that were similar in nature and added no value in understanding of the measures to readers.

financial performance in relation to various benchmarks
to enable the assessment of whether the council is prudently managing its revenues, expenses, assets, liabilities, and general financial dealings.
The council is required to include this statement in its Annual Report in accordance with the Local Government (Financial Reporting and Prudence) Regulations 2014 (the regulations). Refer to the regulations for more information, including definitions of some of the
terms used in this statement.
Unless prescribed by the regulations the quantified limit for each benchmark is calculated using the financial information from the Council’s 2018–28 LTP.

Rates (revenue) affordability
The following graph compares the council’s actual rates revenue with a quantified dollar limit on rates revenue included in the financial strategy included in the council’s long-term plan. The quantified limit for the first three years of the 2018–28 LTP, which encompasses the financial years 2018/19; 2019/20 and 2020/21 is $350,000,000. This means rates revenue should remain below this limit for each of these years.

Rates (increases) affordability
The following graph compares the council’s actual rates increases with a quantified limit on rates increases included in the financial strategy in the council’s long-term plan.
The quantified limit for 2019/20 is 11.6 percent although the actual rates increase set for the 2019/20 year was significantly lower than this limit. The rates increase proposed in the 2018–28 LTP is equivalent to an average rates increase of 3.5 percent over the first three years, which encompasses the financial years 2018/19; 2019/20 and 2020/21.

350	20

300

250	15

$000

200

%

10
150

100	5
50

2016	2017	2018	2019	2020	0
2016	2017	2018	2019	2020	
		Year					Year			

0

Quantified limit on rates revenue Actual rates revenue (at or within limit) Actual rates revenue (exceeds limit)

Quantified limit on rates increase (before growth figure as the actual we are comparing to has growth) Actual rates increase (at or within limit)
Actual rates increase (exceeds limit)

 	
Te Pūrongo ā-Tau Annual Report 2019—2020	Appendices	Te Pūrongo ā-Tau Annual Report 2019—2020	Financial Statements

Debt affordability benchmark
The council meets the debt affordability benchmark if its actual borrowing is within each quantified limit on borrowing. The Council has seven measures for debt affordability and these are set out below. The suitability of these measures has been assessed by Council’s professional advisers, PricewaterhouseCoopers Wellington.

Net borrowing as a percentage of revenue1
The following graph compares the council’s actual borrowing with a quantified limit on borrowing stated
in the financial strategy included in the council’s long-term plan. The quantified limit is net borrowings, comprised
of borrowings less cash and cash equivalents, being less than or equal to 175 percent of revenue. For this measure revenue is defined as total revenue less vested assets and development contribution revenue.

Net interest as a percentage of revenue1
The following graph compares the council’s actual borrowing with a quantified limit on borrowing stated
in the financial strategy included in the council’s long-term plan. The quantified limit is net interest, defined as interest expense less interest revenue, being less than or equal to 15 percent of revenue. For this measure revenue
is defined as total revenue less vested assets and development contribution revenue.

Net interest as a percentage of annual rates revenue
The following graph compares the council’s actual borrowing with a quantified limit on borrowing stated in the financial strategy included in the council’s long- term plan. The quantified limit is net interest, defined as interest expense less interest revenue, being less than or equal to 20 percent of annual rates revenue.

Liquidity (term borrowing + committed loan facilities to existing external net debt)
The following graph compares the council’s actual borrowing with a quantified limit on borrowing stated in the financial strategy included in the council’s long-term plan. The quantified limit is liquidity being greater than or equal to 115 percent. For debt affordability, liquidity is the total of Councils existing external net debt.
Net borrowings for debt affordability are defined as borrowings less cash and cash equivalents.

200	15	20	150

Net borrowing as a % of revenue

Net interest expense as a % of revenue

12
150

120

Net interest expense as a % of rates revenue

Liquidity (term borrowing + committed loan

facilities to existing external net debt (%)

15

9	90
100	10
6	60

50	5
3	30

2016	2017	2018	2019	2020	0
2016	2017	2018	2019	2020	0
2016	2017	2018	2019	2020	0
2016	2017	2018	2019	2020	
		Year					Year					Year					Year			

0

Quantified limit on net borrowing as a percentage of revenue Actual net borrowings as a percentage of revenue
(at or within limit)
Actual net borrowing as a percentage of revenue (exceeds limit)

Quantified limit on net interest expense as a percentage of revenue
Actual net interest expense as a percentage of revenue (at or within limit)
Actual net interest expense as a percentage of revenue (exceeds limit)

Quantified limit on net interest as a percentage of rates revenue
Actual net interest as a percentage of rates revenue (at or within limit)
Actual net interest as a percentage of rates revenue (exceeds limit)

Quantified limit on liquidity (term borrowing + committed loan facilities to existing external net debt)
Actual liquidity (term borrowing + committed loan facilities to existing external net debt) (at or exceeds limit)
Actual liquidity (term borrowing + committed loan facilities to existing external net debt) (below limit)

1. The revenue figure used for this calculation of Net Borrowing as percentage of Revenue and Net Interest as a percentage of Revenue is Total Revenue less Vested Assets and Development Contribution Revenue.

Balanced budget benchmark
The following graph displays the council’s revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant, or equipment) as a proportion of operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant, or equipment).
The council meets this benchmark if its revenue equals or is greater than its operating expenses.
For the purposes of this benchmark, impairments, which represent a non-cash movement in the valuation of assets, were included in the calculation. These unbudgeted impairments represent asset valuation movements relating to Civic Precinct buildings as disclosed in the financial statements. For 2017, 2019 and
2020 impairments of $11.446m, $50.603m and $10.183m were included in the calculation. If these were excluded, the benchmarks for 2017, 2019 and 2020 would be
107 percent, 102 percent and 103 percent respectively.

Essential services benchmark
The following graph displays the council’s capital expenditure on network services as a proportion of depreciation on network services.
The council meets this benchmark if its capital expenditure on network services equals or is greater than depreciation on network services.

Debt servicing benchmark
The following graph displays the council’s borrowing costs as a proportion of revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant, or equipment).
Because Statistics New Zealand projects the council’s population will grow as fast as the national population growth rate, it meets the debt servicing benchmark if its borrowing costs equal or are less than 10 percent of its revenue.

Debt control benchmark
The following graph displays the council’s actual net debt as a proportion of planned net debt. In this statement, net debt means financial liabilities less financial assets (excluding trade and other receivables).
The council meets the debt control benchmark if its actual net debt equals or is less than its planned net debt.
The calculation of net debt in this benchmark includes derivative (non-cash) financial instruments, predominantly cash flow hedges. The 2019/20 net debt was impacted by the valuation of the Council’s cash flow hedge liabilities being higher than planned as a result of interest rate volatility during the financial year. Actual net borrowings at $647.4m were lower than planned net borrowings of
$672.3m.

120

150

12	120

120%

147%

148%

100

101%

Captial expenditure/depreciation (%)

114%

120

10	100

Revenue/expenditure (%)

105%

105%

104%

 	93% 

131%

103%

101%

80
90
60
60
40

20	30

8	80

Borrowing costs/revenue (%)

 	5% 

 	5% 

 	5% 

Acutal/budget net debt (%)

 	92% 

 	89% 

6	60

 	4% 

 	4% 

4	40

2	20

0
2016

2017

2018
Year

2019

2020

0
2016

2017

2018
Year

2019

2020

0
2016

2017

2018
Year

2019

2020

0
2016

2017

2018
Year

 	96% 

2019

2020

Benchmark met Benchmark not met Benchmark

Benchmark met Benchmark not met Benchmark

Benchmark met Benchmark not met Benchmark

Benchmark met Benchmark not met Benchmark

Operations control benchmark
This graph displays the council’s actual net cash flow from operations as a proportion of its planned net cash flow from operations.
The council meets the operations control benchmark if its actual net cash flow from operations equals or is greater than its planned net cash flow from operations.
A number of assumptions are made around the timing of events. Any departure from these assumptions can affect the outcome of this measure. The Council is satisfied that it is prudently managing operational cash
flow, with variances in the 2017/18, 2018/19 and 2019/20 years explained by the timing difference in the receipt of revenues compared to budget that lead to the “not met” outcome for this measure. In 2019/20 there were also significant revenue losses due to the COVID-19 lockdown which would have impacted this measure.

120

Acutal/budget net cash flow from operations (%)

103%

108%

 	98% 

100

 	85% 

 	82% 

80

60

40

20

0
2016

2017

2018
Year

2019

2020

Benchmark met Benchmark not met Benchmark

Funding impact statements
Annual Report disclosure statement for year ending 30 June 2020
What is the purpose of these statements?
An Annual Report must include an audited funding impact statement for the financial year to which the report relates. The purpose of the Funding impact statements
is to disclose the amount of funds produced from each source of funding, identify how the funds were applied and compare this information against the information included in the LTP.
One statement is prepared for the whole of Council’s activities and individual statements are prepared for each strategic activity.
The application of capital funding is summarised in an additional table on page 327.

2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	176,468	176,119	185,248	188,020	185,379	
Targeted rates	134,237	133,768	139,499	137,837	136,642	
Subsidies and grants for operating purposes	6,673	9,214	6,682	7,862	8,034	
Fees and charges	146,430	134,274	149,063	150,153	165,001	
Interest and Dividends from investments	12,994	17,188	14,659	14,659	14,399	
Local authorities fuel tax, fines, infringement fees, and other receipts	8,850	8,291	8,774	8,547	7,770	
Total operating funding (A)	485,652	478,854	503,925	507,078	517,225	

Applications of operating funding						
Payments to staff and suppliers	327,074	335,275	334,718	350,791	345,533	
Finance costs	24,918	25,411	30,902	24,902	26,234	
Internal charges and overheads applied	39,276	34,469	41,084	42,125	31,447	
Internal charges and overheads recovered	(39,276)	(34,469)	(41,084)	(42,125)	(31,447)	
Other operating funding applications	39,042	42,094	43,068	56,764	48,058	
Total applications of operating funding (B)	391,034	402,780	408,688	432,457	419,826	
		
Surplus (deficit) of operating funding (A–B)	94,618	76,074	95,237	74,621	97,399	

Sources of capital funding						
Subsidies and grants for capital expenditure	34,035	31,311	23,700	25,993	27,349	
Development and financial contributions	2,000	2,898	2,000	2,000	3,567	
Increase (decrease) in debt	94,144	69,985	106,552	138,419	96,420	
Gross proceeds from sales of assets	2,000	820	12,000	13,000	18,786	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	132,179	105,014	144,252	179,411	146,122	

Applications of capital funding						
Capital expenditure						
to meet additional demand	1,843	1,775	261	1,078	5,008	
to improve the level of service	109,488	72,685	117,486	102,099	83,477	
to replace existing assets	131,989	97,242	112,156	137,275	124,623	
Increase (decrease) in reserves	(16,523)	9,386	9,586	13,580	30,414	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	226,797	181,088	239,489	254,032	243,522	
		
Surplus (deficit) of capital funding (C–D)	(94,618)	(76,074)	(95,237)	(74,621)	(97,399)	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include
the following depreciation/amortisation charge	117,158	115,423	121,962	124,573	117,270	

Funding impact statement for 1 July 2019 to 30 June 2020 for Whole of Council

Funding impact statement for 1 July 2019 to 30 June 2020 for Governance, Information and Engagement

Funding impact statement for 1 July 2019 to 30 June 2020 for Māori and Mana Whenua partnerships

1.1	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	17,209	17,209	17,751	18,690	18,690	
Targeted rates	–	–	–	–	–	
Subsidies and grants for operating purposes	–	–	–	–	–	
Fees and charges	535	511	924	894	766	
Internal charges and overheads recovered	–	2	–	–	44	
Local authorities fuel tax, fines, infringement fees, and other receipts	–	–	–	–	–	
Total operating funding (A)	17,744	17,722	18,675	19,584	19,500	

Applications of operating funding						
Payments to staff and suppliers	10,416	9,868	11,483	12,186	11,263	
Finance costs	15	14	19	15	15	
Internal charges and overheads applied	7,262	7,692	7,143	7,358	8,141	
Other operating funding applications	10	11	10	10	76	
Total applications of operating funding (B)	17,703	17,585	18,655	19,569	19,495	
		
Surplus (deficit) of operating funding (A–B)	41	137	20	15	5	

Sources of capital funding						
Subsidies and grants for capital expenditure	–	–	–	–	–	
Development and financial contributions	–	–	–	–	–	
Increase (decrease) in debt	10	(37)	103	107	31	
Gross proceeds from sales of assets	–	–	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	10	(37)	103	107	31	

Applications of capital funding						
Capital expenditure						
to meet additional demand	–	–	–	–	–	
to improve the level of service	–	–	–	–	–	
to replace existing assets	51	–	123	123	48	
Increase (decrease) in reserves	–	100	–	(1)	(12)	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	51	100	123	122	36	
		
Surplus (deficit) of capital funding (C–D)	(41)	(137)	(20)	(15)	(5)	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include
the following depreciation/amortisation charge	41	37	20	15	17	

 	
1.2	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	306	306	314	316	316	
Targeted rates	–	–	–	–	–	
Subsidies and grants for operating purposes	–	–	–	–	–	
Fees and charges	–	45	–	–	–	
Internal charges and overheads recovered	–	–	–	–	–	
Local authorities fuel tax, fines, infringement fees, and other receipts	–	–	–	–	–	
Total operating funding (A)	306	351	314	316	316	

Applications of operating funding						
Payments to staff and suppliers	277	327	283	283	278	
Finance costs	1	1	1	1	1	
Internal charges and overheads applied	16	31	16	16	25	
Other operating funding applications	10	–	10	10	–	
Total applications of operating funding (B)	304	359	310	310	304	
		
Surplus (deficit) of operating funding (A–B)	2	(8)	4	6	12	

Sources of capital funding						
Subsidies and grants for capital expenditure	–	–	–	–	–	
Development and financial contributions	–	–	–	–	–	
Increase (decrease) in debt	(2)	(2)	(4)	(6)	(3)	
Gross proceeds from sales of assets	–	–	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	(2)	(2)	(4)	(6)	(3)	

Applications of capital funding						
Capital expenditure						
to meet additional demand	–	–	–	–	–	
to improve the level of service	–	–	–	–	–	
to replace existing assets	–	–	–	–	–	
Increase (decrease) in reserves	–	(10)	–	–	9	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	–	(10)	–	–	9	
		
Surplus (deficit) of capital funding (C–D)	(2)	8	(4)	(6)	(12)	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include
the following depreciation/amortisation charge	2	2	4	2	3	

Funding impact statement for 1 July 2019 to 30 June 2020 for Gardens, beaches and green open spaces

Funding impact statement for 1 July 2019 to 30 June 2020 for Waste reduction and energy conservation

2.1	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	38,056	38,056	40,308	40,551	40,551	
Targeted rates	–	–	–	–	–	
Subsidies and grants for operating purposes	966	1,133	969	969	1,153	
Fees and charges	2,097	2,281	2,119	2,027	1,852	
Internal charges and overheads recovered	5,719	4,834	6,022	5,900	4,286	
Local authorities fuel tax, fines, infringement fees, and other receipts	–	1	–	–	7	
Total operating funding (A)	46,838	46,305	49,418	49,447	47,849	

Applications of operating funding						
Payments to staff and suppliers	22,553	23,144	24,049	24,040	22,364	
Finance costs	2,818	2,136	3,446	2,978	2,013	
Internal charges and overheads applied	14,454	14,465	14,851	15,041	13,551	
Other operating funding applications	165	165	166	114	186	
Total applications of operating funding (B)	39,990	39,910	42,512	42,173	38,114	
		
Surplus (deficit) of operating funding (A–B)	6,848	6,395	6,906	7,274	9,735	

Sources of capital funding						
Subsidies and grants for capital expenditure	–	18	–	–	443	
Development and financial contributions	183	400	183	183	519	
Increase (decrease) in debt	(314)	1,224	(1,081)	1,428	(399)	
Gross proceeds from sales of assets	–	50	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	(131)	1,692	(898)	1,611	563	

Applications of capital funding						
Capital expenditure						
to meet additional demand	–	–	–	–	–	
to improve the level of service	3,675	3,840	3,042	3,503	2,175	
to replace existing assets	3,042	2,605	2,966	5,381	3,167	
Increase (decrease) in reserves	–	1,642	–	1	4,956	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	6,717	8,087	6,008	8,885	10,298	
		
Surplus (deficit) of capital funding (C–D)	(6,848)	(6,395)	(6,906)	(7,274)	(9,735)	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include
the following depreciation/amortisation charge	6,670	8,632	6,906	7,274	8,097	

 	
2.2	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	708	708	727	718	718	
Targeted rates	–	–	–	–	–	
Subsidies and grants for operating purposes	–	25	–	–	–	
Fees and charges	15,833	16,347	16,500	16,722	20,105	
Internal charges and overheads recovered	–	252	–	–	334	
Local authorities fuel tax, fines, infringement fees, and other receipts	–	1	–	–	–	
Total operating funding (A)	16,541	17,333	17,227	17,440	21,157	

Applications of operating funding						
Payments to staff and suppliers	14,104	17,259	14,669	15,458	17,509	
Finance costs	742	739	773	749	1,235	
Internal charges and overheads applied	1,054	1,612	1,019	1,046	692	
Other operating funding applications	180	98	180	180	276	
Total applications of operating funding (B)	16,080	19,708	16,641	17,433	19,713	
		
Surplus (deficit) of operating funding (A–B)	461	(2,375)	586	7	1,445	

Sources of capital funding						
Subsidies and grants for capital expenditure	–	(77)	–	–	176	
Development and financial contributions	–	–	–	–	–	
Increase (decrease) in debt	5,201	3,578	7,763	5,350	(27)	
Gross proceeds from sales of assets	–	–	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	5,201	3,501	7,763	5,350	149	

Applications of capital funding						
Capital expenditure						
to meet additional demand	–	–	–	–	–	
to improve the level of service	–	–	–	–	–	
to replace existing assets	5,662	1,396	8,349	5,358	2,059	
Increase (decrease) in reserves	–	(270)	–	(1)	(466)	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	5,662	1,126	8,349	5,357	1,593	
		
Surplus (deficit) of capital funding (C–D)	(461)	2,375	(586)	(7)	(1,445)	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include
the following depreciation/amortisation charge	461	640	586	651	890	

Funding impact statement for 1 July 2019 to 30 June 2020 for Water

Funding impact statement for 1 July 2019 to 30 June 2020 for Wastewater

2.3	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	–	–	–	–	–	
Targeted rates	45,330	45,330	46,941	47,027	47,027	
Subsidies and grants for operating purposes	–	–	–	–	–	
Fees and charges	37	61	38	38	70	
Internal charges and overheads recovered	–	–	–	–	–	
Local authorities fuel tax, fines, infringement fees, and other receipts	–	–	–	–	–	
Total operating funding (A)	45,367	45,391	46,979	47,065	47,097	

Applications of operating funding						
Payments to staff and suppliers	25,783	25,731	27,473	27,632	28,582	
Finance costs	2,342	2,152	2,946	2,267	2,275	
Internal charges and overheads applied	1,923	2,268	1,980	1,978	2,909	
Other operating funding applications	–	–	–	–	2	
Total applications of operating funding (B)	30,048	30,151	32,399	31,877	33,767	
		
Surplus (deficit) of operating funding (A–B)	15,319	15,240	14,580	15,188	13,330	

Sources of capital funding						
Subsidies and grants for capital expenditure	–	–	–	–	–	
Development and financial contributions	671	677	671	671	714	
Increase (decrease) in debt	2,436	(2,963)	8,696	6,156	6,859	
Gross proceeds from sales of assets	–	–	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	3,107	(2,286)	9,367	6,827	7,573	

Applications of capital funding						
Capital expenditure						
to meet additional demand	–	–	–	–	–	
to improve the level of service	9,553	4,665	17,216	14,260	13,812	
to replace existing assets	8,873	7,504	6,731	7,756	8,608	
Increase (decrease) in reserves	–	785	–	(1)	(1,517)	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	18,426	12,954	23,947	22,015	20,903	
		
Surplus (deficit) of capital funding (C–D)	(15,319)	(15,240)	(14,580)	(15,188)	(13,330)	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include
the following depreciation/amortisation charge	15,319	14,456	14,580	15,189	14,847	

 	
2.4	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	–	–	–	–	–	
Targeted rates	43,333	43,333	45,194	44,337	44,337	
Subsidies and grants for operating purposes	–	–	–	–	–	
Fees and charges	1,237	1,059	1,267	1,267	1,190	
Internal charges and overheads recovered	–	–	–	–	–	
Local authorities fuel tax, fines, infringement fees, and other receipts	–	–	–	–	–	
Total operating funding (A)	44,570	44,392	46,461	45,604	45,527	

Applications of operating funding						
Payments to staff and suppliers	23,205	21,431	23,848	24,325	33,830	
Finance costs	4,046	3,865	4,760	4,002	4,028	
Internal charges and overheads applied	5,095	6,770	5,220	5,217	7,928	
Other operating funding applications	–	–	–	–	–	
Total applications of operating funding (B)	32,346	32,066	33,828	33,544	45,786	
		
Surplus (deficit) of operating funding (A–B)	12,224	12,326	12,633	12,060	(259)	

Sources of capital funding						
Subsidies and grants for capital expenditure	–	245	–	–	1	
Development and financial contributions	549	720	549	549	864	
Increase (decrease) in debt	(4,035)	(3,015)	(3,316)	(2,322)	21,125	
Gross proceeds from sales of assets	–	–	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	(3,486)	(2,050)	(2,767)	(1,773)	21,990	

Applications of capital funding						
Capital expenditure						
to meet additional demand	–	–	–	–	–	
to improve the level of service	3,406	3,439	901	901	746	
to replace existing assets	5,332	6,068	8,965	9,387	22,866	
Increase (decrease) in reserves	–	769	–	(1)	(1,881)	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	8,738	10,276	9,866	10,287	21,731	
		
Surplus (deficit) of capital funding (C–D)	(12,224)	(12,326)	(12,633)	(12,060)	259	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include
the following depreciation/amortisation charge	14,134	13,467	14,543	14,134	13,572	

Funding impact statement for 1 July 2019 to 30 June 2020 for Stormwater

Funding impact statement for 1 July 2019 to 30 June 2020 for Conservation attractions

2.5	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	–	–	–	–	–	
Targeted rates	19,097	19,097	20,359	19,420	19,420	
Subsidies and grants for operating purposes	153	127	153	153	120	
Fees and charges	10	4	10	10	1	
Internal charges and overheads recovered	–	–	–	–	–	
Local authorities fuel tax, fines, infringement fees, and other receipts	–	–	–	–	–	
Total operating funding (A)	19,260	19,228	20,522	19,583	19,541	

Applications of operating funding						
Payments to staff and suppliers	6,973	6,842	7,223	7,363	6,672	
Finance costs	2,493	2,339	3,136	2,443	2,522	
Internal charges and overheads applied	1,857	2,185	1,924	1,919	2,535	
Other operating funding applications	–	–	–	–	–	
Total applications of operating funding (B)	11,323	11,366	12,283	11,725	11,729	
		
Surplus (deficit) of operating funding (A–B)	7,937	7,862	8,239	7,858	7,812	

Sources of capital funding						
Subsidies and grants for capital expenditure	–	–	–	–	–	
Development and financial contributions	58	55	58	58	89	
Increase (decrease) in debt	3,343	1,503	1,050	1,608	(3,766)	
Gross proceeds from sales of assets	–	–	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	3,401	1,558	1,108	1,666	(3,678)	

Applications of capital funding						
Capital expenditure						
to meet additional demand	–	–	–	–	–	
to improve the level of service	7,729	3,151	902	902	209	
to replace existing assets	3,609	5,906	8,445	8,622	3,756	
Increase (decrease) in reserves	–	363	–	–	170	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	11,338	9,420	9,347	9,524	4,135	
		
Surplus (deficit) of capital funding (C–D)	(7,937)	(7,862)	(8,239)	(7,858)	(7,812)	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include
the following depreciation/amortisation charge	7,937	7,499	8,239	7,858	7,642	

 	
2.6	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	6,829	6,829	7,001	6,927	6,927	
Targeted rates	–	–	–	–	–	
Subsidies and grants for operating purposes	–	–	–	–	–	
Fees and charges	–	2	–	–	–	
Internal charges and overheads recovered	–	–	–	–	–	
Local authorities fuel tax, fines, infringement fees, and other receipts	–	–	–	–	–	
Total operating funding (A)	6,829	6,831	7,001	6,927	6,927	

Applications of operating funding						
Payments to staff and suppliers	171	179	174	177	176	
Finance costs	627	604	689	632	578	
Internal charges and overheads applied	–	1	–	–	–	
Other operating funding applications	4,327	4,327	4,438	4,438	4,942	
Total applications of operating funding (B)	5,125	5,111	5,301	5,247	5,696	
		
Surplus (deficit) of operating funding (A–B)	1,704	1,720	1,700	1,680	1,231	

Sources of capital funding						
Subsidies and grants for capital expenditure	–	–	475	475	720	
Development and financial contributions	–	–	–	–	–	
Increase (decrease) in debt	(554)	236	(217)	(197)	(1,265)	
Gross proceeds from sales of assets	–	–	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	(554)	236	258	278	(545)	

Applications of capital funding						
Capital expenditure						
to meet additional demand	–	–	–	–	–	
to improve the level of service	–	–	–	–	133	
to replace existing assets	1,150	1,896	1,076	1,076	1,056	
Increase (decrease) in reserves	–	60	882	882	(503)	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	1,150	1,956	1,958	1,958	686	
		
Surplus (deficit) of capital funding (C–D)	(1,704)	(1,720)	(1,700)	(1,680)	(1,231)	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include
the following depreciation/amortisation charge	1,704	1,660	1,700	1,681	1,735	

Funding impact statement for 1 July 2019 to 30 June 2020 for City promotions and business support

Funding impact statement for 1 July 2019 to 30 June 2020 for Arts and Culture activities

3.1	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	4,865	4,865	4,701	5,615	5,615	
Targeted rates	14,160	14,160	14,318	15,006	15,006	
Subsidies and grants for operating purposes	–	748	–	–	52	
Fees and charges	14,643	346	14,953	14,953	281	
Internal charges and overheads recovered	–	35	–	–	–	
Local authorities fuel tax, fines, infringement fees, and other receipts	–	–	–	–	–	
Total operating funding (A)	33,668	20,154	33,972	35,574	20,954	

Applications of operating funding						
Payments to staff and suppliers	17,784	3,838	18,279	18,555	3,524	
Finance costs	1,323	1,013	2,124	1,239	1,108	
Internal charges and overheads applied	1,292	893	1,342	1,368	554	
Other operating funding applications	14,252	14,384	14,547	14,593	14,488	
Total applications of operating funding (B)	34,651	20,128	36,292	35,755	19,674	
		
Surplus (deficit) of operating funding (A–B)	(983)	26	(2,320)	(181)	1,280	

Sources of capital funding						
Subsidies and grants for capital expenditure	–	753	–	–	–	
Development and financial contributions	–	–	–	–	–	
Increase (decrease) in debt	4,340	(323)	4,168	3,270	5,296	
Gross proceeds from sales of assets	–	–	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	4,340	430	4,168	3,270	5,296	

Applications of capital funding						
Capital expenditure						
to meet additional demand	–	–	–	–	–	
to improve the level of service	–	–	–	–	–	
to replace existing assets	3,357	738	511	3,089	1,111	
Increase (decrease) in reserves	–	(282)	1,337	–	5,465	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	3,357	456	1,848	3,089	6,576	
		
Surplus (deficit) of capital funding (C–D)	983	(26)	2,320	181	(1,280)	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include
the following depreciation/amortisation charge	1,713	1,808	1,829	2,352	1,734	

 	
4.1	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	15,761	15,761	15,632	15,876	15,876	
Targeted rates	5,979	5,979	5,927	5,688	5,688	
Subsidies and grants for operating purposes	424	99	424	424	105	
Fees and charges	602	711	606	606	533	
Internal charges and overheads recovered	–	–	–	–	1	
Local authorities fuel tax, fines, infringement fees, and other receipts	–	–	–	–	–	
Total operating funding (A)	22,766	22,550	22,589	22,594	22,204	

Applications of operating funding						
Payments to staff and suppliers	6,359	5,954	5,975	7,160	4,473	
Finance costs	260	270	263	251	246	
Internal charges and overheads applied	1,385	1,516	1,392	1,414	1,451	
Other operating funding applications	14,012	14,768	14,214	13,063	15,560	
Total applications of operating funding (B)	22,016	22,508	21,844	21,888	21,730	
		
Surplus (deficit) of operating funding (A–B)	750	42	745	706	473	

Sources of capital funding						
Subsidies and grants for capital expenditure	–	–	–	–	–	
Development and financial contributions	–	–	–	–	–	
Increase (decrease) in debt	156	4,573	15,242	16,236	22,894	
Gross proceeds from sales of assets	–	–	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	156	4,573	15,242	16,236	22,894	

Applications of capital funding						
Capital expenditure						
to meet additional demand	–	–	–	–	–	
to improve the level of service	759	4,130	15,987	16,942	23,540	
to replace existing assets	147	15	–	–	(4)	
Increase (decrease) in reserves	–	470	–	–	(169)	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	906	4,615	15,987	16,942	23,367	
		
Surplus (deficit) of capital funding (C–D)	(750)	(42)	(745)	(706)	(473)	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include
the following depreciation/amortisation charge	750	760	745	706	749	

Funding impact statement for 1 July 2019 to 30 June 2020 for Recreation promotion and support

Funding impact statement for 1 July 2019 to 30 June 2020 for Community support

5.1	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	29,449	29,449	29,576	29,856	29,856	
Targeted rates	1,330	1,330	1,419	1,406	1,406	
Subsidies and grants for operating purposes	184	203	191	171	133	
Fees and charges	11,557	11,770	11,854	12,076	9,036	
Internal charges and overheads recovered	1,076	1,158	1,133	1,096	1,452	
Local authorities fuel tax, fines, infringement fees, and other receipts	–	–	–	–	–	
Total operating funding (A)	43,596	43,910	44,173	44,605	41,883	

Applications of operating funding						
Payments to staff and suppliers	20,365	20,319	20,747	20,981	20,214	
Finance costs	2,748	2,651	2,875	2,772	2,475	
Internal charges and overheads applied	11,308	11,949	11,352	11,394	12,146	
Other operating funding applications	864	840	727	877	848	
Total applications of operating funding (B)	35,285	35,759	35,701	36,024	35,683	
		
Surplus (deficit) of operating funding (A–B)	8,311	8,151	8,472	8,581	6,200	

Sources of capital funding						
Subsidies and grants for capital expenditure	50	–	700	700	178	
Development and financial contributions	–	–	–	–	–	
Increase (decrease) in debt	(434)	(1,984)	2,520	4,243	9,060	
Gross proceeds from sales of assets	–	7	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	(384)	(1,977)	3,220	4,943	9,238	

Applications of capital funding						
Capital expenditure						
to meet additional demand	–	–	–	–	–	
to improve the level of service	646	48	387	640	59	
to replace existing assets	7,281	7,140	11,305	12,882	14,840	
Increase (decrease) in reserves	–	(1,014)	–	2	539	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	7,927	6,174	11,692	13,523	15,438	
		
Surplus (deficit) of capital funding (C–D)	(8,311)	(8,151)	(8,472)	(8,581)	(6,200)	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include the following depreciation/amortisation charge	8,311	9,166	8,472	8,578	8,105	

 	
5.2	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	26,086	26,086	27,202	26,677	26,677	
Targeted rates	5,008	5,008	5,341	4,953	4,953	
Subsidies and grants for operating purposes	–	19	–	–	(1)	
Fees and charges	23,761	24,334	24,385	23,572	27,009	
Internal charges and overheads recovered	450	459	474	601	352	
Local authorities fuel tax, fines, infringement fees, and other receipts	545	322	469	242	195	
Total operating funding (A)	55,850	56,228	57,871	56,045	59,185	

Applications of operating funding						
Payments to staff and suppliers	28,136	40,017	29,176	33,237	29,267	
Finance costs	(888)	(1,025)	(757)	(1,027)	(1,076)	
Internal charges and overheads applied	13,714	14,117	13,932	13,451	14,497	
Other operating funding applications	4,582	4,340	4,636	18,787	5,513	
Total applications of operating funding (B)	45,544	57,449	46,987	64,448	48,201	
		
Surplus (deficit) of operating funding (A–B)	10,306	(1,221)	10,884	(8,403)	10,984	

Sources of capital funding						
Subsidies and grants for capital expenditure	–	–	–	500	–	
Development and financial contributions	–	26	–	–	19	
Increase (decrease) in debt	19,093	23,211	5,736	26,104	(11,828)	
Gross proceeds from sales of assets	–	–	–	1,000	14,000	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	19,093	23,237	5,736	27,604	2,191	

Applications of capital funding						
Capital expenditure						
to meet additional demand	–	–	–	–	–	
to improve the level of service	13,978	13,260	3,877	3,923	4,480	
to replace existing assets	15,421	7,879	12,743	15,278	9,496	
Increase (decrease) in reserves	–	877	–	–	(801)	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	29,399	22,016	16,620	19,201	13,175	
		
Surplus (deficit) of capital funding (C–D)	(10,306)	1,221	(10,884)	8,403	(10,984)	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include
the following depreciation/amortisation charge	16,624	17,144	18,009	19,646	17,982	

Funding impact statement for 1 July 2019 to 30 June 2020 for Public health and safety

Funding impact statement for 1 July 2019 to 30 June 2020 for Urban planning, heritage and public spaces development

5.3	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	12,246	12,246	12,687	12,684	12,684	
Targeted rates	–	–	–	–	–	
Subsidies and grants for operating purposes	–	14	–	–	11	
Fees and charges	4,440	4,106	4,533	4,574	4,434	
Internal charges and overheads recovered	705	583	742	722	630	
Local authorities fuel tax, fines, infringement fees, and other receipts	79	23	79	79	23	
Total operating funding (A)	17,470	16,972	18,041	18,059	17,782	

Applications of operating funding						
Payments to staff and suppliers	9,418	9,572	9,748	9,782	9,794	
Finance costs	135	134	170	143	144	
Internal charges and overheads applied	6,669	6,401	6,790	6,739	6,500	
Other operating funding applications	54	80	54	54	470	
Total applications of operating funding (B)	16,276	16,187	16,762	16,718	16,908	
		
Surplus (deficit) of operating funding (A–B)	1,194	785	1,279	1,341	874	

Sources of capital funding						
Subsidies and grants for capital expenditure	–	–	–	–	–	
Development and financial contributions	–	–	–	–	–	
Increase (decrease) in debt	1,172	486	977	2,151	1,923	
Gross proceeds from sales of assets	–	–	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	1,172	486	977	2,151	1,923	

Applications of capital funding						
Capital expenditure						
to meet additional demand	–	–	–	–	–	
to improve the level of service	603	271	260	1,256	2,020	
to replace existing assets	1,763	1,427	1,996	2,236	756	
Increase (decrease) in reserves	–	(427)	–	–	21	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	2,366	1,271	2,256	3,492	2,797	
		
Surplus (deficit) of capital funding (C–D)	(1,194)	(785)	(1,279)	(1,341)	(874)	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include the following depreciation/amortisation charge	1,194	1,212	1,279	1,340	1,217	

 	
6.1	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	11,044	11,044	9,363	11,072	11,072	
Targeted rates	–	–	–	–	–	
Subsidies and grants for operating purposes	–	(10)	–	–	–	
Fees and charges	21	173	22	22	280	
Internal charges and overheads recovered	309	(1)	264	220	396	
Local authorities fuel tax, fines, infringement fees, and other receipts	–	–	–	–	–	
Total operating funding (A)	11,374	11,206	9,649	11,314	11,748	

Applications of operating funding						
Payments to staff and suppliers	7,961	6,813	6,203	6,881	7,284	
Finance costs	15	15	19	16	16	
Internal charges and overheads applied	2,907	2,925	2,896	3,328	3,101	
Other operating funding applications	450	285	450	1,000	894	
Total applications of operating funding (B)	11,333	10,038	9,568	11,225	11,295	
		
Surplus (deficit) of operating funding (A–B)	41	1,168	81	89	453	

Sources of capital funding						
Subsidies and grants for capital expenditure	–	–	–	–	–	
Development and financial contributions	–	–	–	–	–	
Increase (decrease) in debt	12,222	6,000	4,208	10,508	3,171	
Gross proceeds from sales of assets	–	–	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	12,222	6,000	4,208	10,508	3,171	

Applications of capital funding						
Capital expenditure						
to meet additional demand	1,585	1,219	–	815	13	
to improve the level of service	8,841	3,394	2,549	7,472	506	
to replace existing assets	1,837	1,433	1,740	2,310	2,731	
Increase (decrease) in reserves	–	1,122	–	–	374	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	12,263	7,168	4,289	10,597	3,624	
		
Surplus (deficit) of capital funding (C–D)	(41)	(1,168)	(81)	(89)	(453)	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include the following depreciation/amortisation charge	41	46	81	89	78	

Funding impact statement for 1 July 2019 to 30 June 2020 for Building and development control

Funding impact statement for 1 July 2019 to 30 June 2020 for Transport

6.2	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	7,466	7,466	8,363	8,790	8,790	
Targeted rates	–	–	–	–	–	
Subsidies and grants for operating purposes	–	–	–	–	4	
Fees and charges	13,210	13,711	12,598	14,161	11,967	
Internal charges and overheads recovered	191	–	201	201	160	
Local authorities fuel tax, fines, infringement fees, and other receipts	24	10	24	24	7	
Total operating funding (A)	20,891	21,187	21,186	23,176	20,928	

Applications of operating funding						
Payments to staff and suppliers	12,549	12,484	12,925	14,495	16,133	
Finance costs	2	–	3	1	–	
Internal charges and overheads applied	8,165	7,797	8,177	8,599	9,550	
Other operating funding applications	35	209	35	35	(4)	
Total applications of operating funding (B)	20,751	20,490	21,140	23,130	25,679	
		
Surplus (deficit) of operating funding (A–B)	140	697	46	46	(4,751)	

Sources of capital funding						
Subsidies and grants for capital expenditure	–	–	–	–	–	
Development and financial contributions	–	–	–	–	–	
Increase (decrease) in debt	31,867	8,431	44,625	32,979	22,587	
Gross proceeds from sales of assets	–	–	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	31,867	8,431	44,625	32,979	22,587	

Applications of capital funding						
Capital expenditure						
to meet additional demand	–	–	–	–	4,942	
to improve the level of service	19,090	6,698	44,054	19,146	8,336	
to replace existing assets	12,917	1,866	617	13,879	9,070	
Increase (decrease) in reserves	–	564	–	–	(4,512)	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	32,007	9,128	44,671	33,025	17,836	
		
Surplus (deficit) of capital funding (C–D)	(140)	(697)	(46)	(46)	4,751	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include the following depreciation/amortisation charge	140	132	46	45	32	

 	
7.1	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	39,479	39,479	46,852	43,851	43,851	
Targeted rates	–	–	–	–	–	
Subsidies and grants for operating purposes	4,946	6,828	4,945	5,670	6,452	
Fees and charges	2,215	3,576	2,253	2,657	3,063	
Internal charges and overheads recovered	–	–	–	–	–	
Local authorities fuel tax, fines, infringement fees, and other receipts	–	–	–	–	2	
Total operating funding (A)	46,640	49,883	54,050	52,178	53,368	

Applications of operating funding						
Payments to staff and suppliers	16,013	17,350	16,372	18,060	17,821	
Finance costs	6,491	5,930	8,238	6,634	6,375	
Internal charges and overheads applied	7,515	7,682	7,706	8,527	7,590	
Other operating funding applications	–	(9)	2,500	2,500	5	
Total applications of operating funding (B)	30,019	30,953	34,816	35,721	31,791	
		
Surplus (deficit) of operating funding (A–B)	16,621	18,930	19,234	16,457	21,577	

Sources of capital funding						
Subsidies and grants for capital expenditure	26,110	30,370	16,931	24,506	25,815	
Development and financial contributions	539	1,019	539	539	1,362	
Increase (decrease) in debt	30,031	7,849	16,843	16,383	6,919	
Gross proceeds from sales of assets	–	–	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	56,680	39,238	34,313	41,428	34,096	

Applications of capital funding						
Capital expenditure						
to meet additional demand	258	130	261	263	52	
to improve the level of service	38,317	19,206	22,834	24,635	19,659	
to replace existing assets	34,726	34,156	30,452	32,986	29,187	
Increase (decrease) in reserves	–	4,676	–	1	6,775	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	73,301	58,168	53,547	57,885	55,673	
		
Surplus (deficit) of capital funding (C–D)	(16,621)	(18,930)	(19,234)	(16,457)	(21,577)	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include the following depreciation/amortisation charge	32,840	29,012	34,629	34,688	30,555	

Funding impact statement for 1 July 2019 to 30 June 2020 for Parking

Capital Expenditure by Strategy

7.2	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Sources of operating funding						
General rates, uniform annual general charges, rates penalties	(15,474)	(15,474)	(17,545)	(16,089)	(16,089)	
Targeted rates	–	–	–	–	–	
Subsidies and grants for operating purposes	–	–	–	–	–	
Fees and charges	23,821	23,080	26,135	25,206	21,473	
Internal charges and overheads recovered	–	–	–	–	–	
Local authorities fuel tax, fines, infringement fees, and other receipts	7,102	6,795	7,102	7,102	6,539	
Total operating funding (A)	15,449	14,401	15,692	16,219	11,923	

Applications of operating funding						
Payments to staff and suppliers	11,044	11,271	11,224	12,082	11,509	
Finance costs	18	13	23	18	10	
Internal charges and overheads applied	3,581	3,716	3,584	3,712	3,996	
Other operating funding applications	1	(364)	1	1	(53)	
Total applications of operating funding (B)	14,644	14,636	14,832	15,813	15,462	
		
Surplus (deficit) of operating funding (A–B)	805	(235)	860	406	(3,539)	

Sources of capital funding						
Subsidies and grants for capital expenditure	–	–	–	–	–	
Development and financial contributions	–	–	–	–	–	
Increase (decrease) in debt	219	27	(673)	(182)	5,195	
Gross proceeds from sales of assets	–	–	–	–	–	
Lump sum contributions	–	–	–	–	–	
Total sources of capital funding (C)	219	27	(673)	(182)	5,195	

Applications of capital funding						
Capital expenditure						
to meet additional demand	–	–	–	–	–	
to improve the level of service	171	48	130	133	92	
to replace existing assets	853	773	57	91	100	
Increase (decrease) in reserves	–	(1,029)	–	–	1,464	
Increase (decrease) in investments	–	–	–	–	–	
Total applications of capital funding (D)	1,024	(208)	187	224	1,656	
		
Surplus (deficit) of capital funding (C–D)	(805)	235	(860)	(406)	3,539	
		
Funding balance ((A–B) + (C–D))	–	–	–	–	–	
		
Expenses for this activity grouping include the following depreciation/amortisation charge	805	794	860	906	819	

 	
Strategy	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Governance:						
to meet additional demand	–	–	–	–	–	
to improve the level of service	–	–	–	–	–	
to replace existing assets	51	–	123	123	48	
Governance Total	51	–	123	123	48	

Environment:						
to meet additional demand	–	–	–	–	–	
to improve the level of service	24,363	15,095	23,138	20,643	17,075	
to replace existing assets	27,668	25,375	36,338	37,385	41,512	
Environment Total	52,031	40,470	59,477	58,028	58,587	

Economic Development:						
to meet additional demand	–	–	–	–	–	
to improve the level of service	–	–	510	–	–	
to replace existing assets	3,357	738	1,337	3,089	1,111	
Economic Development Total	3,357	738	1,847	3,089	1,111	

Cultural Well-being:						
to meet additional demand	–	–	–	–	–	
to improve the level of service	759	4,130	15,987	16,941	23,540	
to replace existing assets	147	15	–	–	(4)	
Cultural Wellbeing Total	906	4,145	15,987	16,941	23,536	

Social and Recreation:						
to meet additional demand	–	–	–	–	–	
to improve the level of service	15,227	13,580	4,524	5,820	6,559	
to replace existing assets	24,465	16,445	26,045	30,394	25,092	
Social and Recreation Total	39,692	30,025	30,569	36,214	31,651	

Urban Development:						
to meet additional demand	1,585	1,219	–	815	4,956	
to improve the level of service	27,931	10,092	46,602	26,617	8,842	
to replace existing assets	14,754	3,299	2,358	16,189	11,801	
Urban Development Total	44,270	14,610	48,960	43,621	25,599	

Transport:						
to meet additional demand	258	130	261	263	52	
to improve the level of service	38,488	19,254	22,964	24,767	19,751	
to replace existing assets	35,579	34,929	30,511	33,077	29,287	
Transport Total	74,325	54,313	53,735	58,107	49,090	

Capital Expenditure by Strategy continued

Strategy	2018/19	2018/19	2019/20	2019/20	2019/20	
	LTP	Actual	LTP	AP	Actual	
	$000	$000	$000	$000	$000	
Council organisation:						
to meet additional demand	–	425	–	–	–	
to improve the level of service	2,720	10,535	3,760	7,310	7,710	
to replace existing assets	25,968	16,441	15,448	17,019	15,776	
Council organisation Total	28,688	27,401	19,208	24,329	23,486	

Total Council:						
to meet additional demand	1,843	1,775	261	1,078	5,008	
to improve the level of service	109,488	72,685	117,486	102,099	83,477	
to replace existing assets	131,989	97,242	112,158	137,275	124,623	
Total Council	243,320	171,702	229,905	240,452	213,108	

Independent auditor's report

To the readers of Wellington City Council’s Annual Report for the year ended 30 June 2020

The Auditor-General is the auditor of Wellington City Council (the City Council) and its subsidiaries and controlled entities (the Group). The Auditor-General has appointed me, Karen Young, using the staff and resources of Audit New Zealand, to report on the information in the City Council’s Annual Report that we are required to audit under the Local Government Act 2002 (the Act). We refer to this information
as “the audited information” in our report. We are also required to report on:
whether the City Council has complied with the requirements of Schedule 10 of the Act that apply to the Annual Report; and
the completeness and accuracy of the City Council’s disclosures about its performance against benchmarks that are required by the Local Government (Financial Reporting and Prudence) Regulations 2014.
We refer to this information as “the disclosure requirements” in our report.
We completed our work on 16 December 2020. This is the date on which we give our report.
Opinion
Unmodified opinion on the audited information, excluding the statement of service provision
In our opinion:
the financial statements on pages 190 to 299:
°	present fairly, in all material respects:
˙ the City Council and Group’s financial position as at 30 June 2020;
˙ the results of the operations and cash flows for the year ended on that date; and
° comply with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Reporting Standards;

the funding impact statement on page 309, presents fairly, in all material respects, the amount of funds produced from each source of funding and how the funds were applied as compared to the information included in the City Council’s Long-term plan;
the statement about capital expenditure for each group of activities on pages 327 to 328, presents fairly, in all material respects, actual capital expenditure
as compared to the budgeted capital expenditure included in the City Council’s Long-term plan; and
the funding impact statement for each group of activities on pages 310 to 326, presents fairly, in all material respects, the amount of funds produced from each source of funding and how the funds were applied as compared to the information included in the City Council’s Long-term plan.

Qualified opinion on the statement of service provision
In our opinion, except for the possible effects of the matters described in the Basis for our qualified opinion section of our report, the statement
of service provision on pages 26 to 150:
presents fairly, in all material respects, the levels of service for each group of activities for the year ended 30 June 2020, including:
°	the levels of service achieved compared with the intended levels of service
and whether any intended changes to levels of service were achieved;
° the reasons for any significant variation between the levels of service achieved and the intended levels of service; and
complies with generally accepted accounting practice in New Zealand.

Report on the disclosure requirements
We report that the City Council has:
complied with the requirements of Schedule 10 of the Act that apply to the Annual Report; and
made the disclosures about performance against benchmarks as required by the Local Government (Financial Reporting and Prudence Regulations 2014) on pages 300 to 306, which represent a complete list of required disclosures and accurately reflects the information drawn from the City Council’s audited information and, where applicable, the
City Council’s long-term plan and annual plans.
Basis for our qualified opinion
Six councils, including the City Council, are joint shareholders in Wellington Water Limited (Wellington Water). Wellington Water manages
the six councils’ water assets and services on their behalf. A Committee represented by a member of each shareholding council monitors the performance of Wellington Water. Wellington Water reports its performance in respect of water services to the six councils, which are required to report thereon in their respective statements of service provision.
We identified a number of significant issues with the performance measures as described below.
Fault response times – Water supply, Wastewater and Stormwater
Wellington Water was unable to accurately report on fault response times for each of the three water services.
The information produced by the system used to report on fault response times was not reliable because attendance and resolution times for service requests were not always recorded at the point in time they occurred.
Maintenance of the reticulation network – Water supply
Wellington Water was unable to report a reliable water loss percentage for each shareholding

council due to the limited number of water meters across the reticulation network.
Instead, the water loss percentage for the City Council was reported at a regional level. However, the reliability of this regional water loss percentage was also affected by the limited number of water meters.
Total number of complaints received – Water supply, Wastewater, and Stormwater
Wellington Water was unable to accurately report the number of complaints for each of the three water services. Complete records of all complaints were not available, and the complaints system used also did not classify complaints between wastewater, water supply and stormwater.
Number of dry weather sewerage overflows – Wastewater
Wellington Water was unable to accurately report the number of dry weather sewerage overflows, as the system used for recording events included blockages in the wastewater network that
did not necessarily result in an overflow.
As a result of these issues, our work was limited and there were no practicable audit procedures we could apply to obtain assurance over the reported results for the performance measures described above.
We carried out our audit in accordance with the Auditor- General’s Auditing Standards, which incorporate the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued by the
New Zealand Auditing and Assurance Standards Board. We describe our responsibilities under those
standards further in the “Responsibilities of the auditor for the audited information” section of this report.
We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing Standards.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion on the audited information.

Emphasis of matter – Impact of Covid-19
Without further modifying our opinion, we draw attention to the disclosures about the impact of Covid-19 on the City Council as set out in Table 1 on page 195 and in notes 1, 2, 12, 18, 21, 24, 30 and 34 to the financial statements and pages 26 to 150 of the statement of service provision.

Responsibilities of the Council for the audited information
The Council is responsible for meeting all legal requirements that apply to its Annual Report.
The Council’s responsibilities arise under the Local Government Act 2002 and the Local Government (Financial Reporting and Prudence) Regulations 2014.
The Council is responsible for such internal control as it determines is necessary to enable it to prepare the information we audit that is free from material misstatement, whether due to fraud or error.
In preparing the information we audit the Council is responsible for assessing its ability to continue as
a going concern. The Council is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless there is an intention to amalgamate or cease
all of the functions of the City Council and the Group or there is no realistic alternative but to do so.

Responsibilities of the auditor for the audited information
Our objectives are to obtain reasonable assurance about whether the audited information, as a whole, is free from material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in
accordance with the Auditor-General’s Auditing Standards will always detect a material misstatement when it
exists. Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud

or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of readers taken on the basis of this audited information.
For the budget information reported in the audited information, our procedures were limited to checking that the budget information agreed to the City Council’s Long-term plan.
We did not evaluate the security and controls over the electronic publication of the audited information.
As part of an audit in accordance with the Auditor- General’s Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also:
We identify and assess the risks of material misstatement of the audited information, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City Council and Group’s internal control.
We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Council.
We determine the appropriateness of the reported intended levels of service in the statement of service provision, as a reasonable basis for assessing the levels of service achieved and reported by the City Council.
We conclude on the appropriateness of the use of the going concern basis of accounting by the Council

and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast a significant doubt on
the City Council and Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our audit report to the related disclosures in
the audited information or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events
or conditions may cause the City Council and the Group to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the audited information, including the disclosures, and whether the audited information represents, where applicable,
the underlying transactions and events in a manner that achieves fair presentation.
We obtain sufficient appropriate audit evidence regarding the entities or business activities within the Group to express an opinion on
the consolidated audited information.
We communicate with the Council regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Other Information
The Council is responsible for the other information included in the Annual Report. The other information comprises the information included on 2 to 25, 151 to 189,
300 to 306, and 336 to 339, but does not include the audited information and the disclosure requirements.
Our opinion on the audited information and our report on the disclosure requirements do not cover the other information.
Our responsibility is to read the other information.
In doing so, we consider whether the other information

is materially inconsistent with the audited information and the disclosure requirements, or our knowledge obtained during our work, or otherwise appears to
be materially misstated. If, based on our work, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Independence
We are independent of the City Council and Group in accordance with the independence requirements of the Auditor-General’s Auditing Standards, which incorporate the independence requirements of
Professional and Ethical Standard 1: International Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board.
In addition to our audit and our report on the disclosure requirements, we have performed a limited assurance engagement related to the City Council’s debenture trust deed and performed a review of the revenue and expenditure of the Clifton Terrace car park managed
by the City Council and Group on behalf of the New Zealand Transport Agency. These engagements are compatible with those independence requirements. Other than this reporting, and these engagements, we have no relationship with or interests in the City Council or its subsidiaries and controlled entities.

Karen Young
Audit New Zealand
On behalf of the Auditor-General Wellington, New Zealand

Appendices

334	335

Events in 2019/20

336

337

Winter Wednesdays Wellington Zoo

Visa WOAP

Spring Festival

Diwali

Diwali

This year Wellington had another full events calendar, including international, regional and local sporting tournaments, concerts, popular annual festivals and community events. Due to COVID-19
restrictions, many events from March to June were cancelled or postponed.
July 2019
Beyond the Page
Super Rugby Quarter Final NZ International Film Festival K-Culture Festival
National Junior Futsal Championships All Blacks vs South Africa
Festival for the Future NZ Warriors v Cronulla- Sutherland Sharks
Semi Conductor – Eva Rothschild exhibition
August 2019
Wellington Zoo Winter Wednesdays RECUT Kumutoto
Beervana
Visa Wellington on a Plate Wellington Lions and Pride seasons start International Junior Pacific Diving Championships

September 2019
Te Wiki o te reo Māori Parade Art Splash
Spring Festival Tulip Sunday Kids’ Day Out
NZ Chinese Language Week WOW®
NZ Handball Club Championships NZ Underwater Hockey Secondary School Championships
Home & Garden Show Emergency Services Expo
October 2019
Seniors’ Week
Wellington Heritage Week Spring into Tawa
NZ Improv Festival Synthony
Wellington Phoenix season starts Wellington Firebirds & Blaze cricket seasons start
Mitre10 Cup semi-final: Wellington vs Canterbury Pink Star Walk
Maker Faire Wellington
NZ Boccia National Champs
NZ National Men’s Futsal Super League Event

New Zealand Underwater Hockey Club Nationals
November 2019 Verb Wellington LitCrawl
Mary Potter Hospice Strawberry Festival Diwali
Polish Christmas Market Beers at the Basin
A Very Welly Christmas Stadium Climb Wellington Wellington Zoo Nestival
December 2019
A Long Walk Home
18th Johnsonville Lions Christmas Parade Thorndon Fair
NZ Secondary Schools Track, Field & Road Race championships
NZ Water Polo 14 & Under Water Polo Championships
Christmas in Strathmore Park Khandallah Village Street Fair The 12 Storytimes of Christmas Black Caps v England Tour Tuia250
Moscow Circus
New Year’s Eve Celebrations

January 2020 Gardens Magic Kids Magic Pasifika Festival
Gindulgence
Capital Classic Ocean Swim Summer in the Sanctuary Black Caps vs India ODI
February 2020
Black Caps and White Ferns vs India T20 double header
White Ferns v South Africa Black Caps vs India Test Te Rā o Waitangi
Kotahi
Chinese New Year Festival Queen & Adam Lambert
NZ National Women’s Futsal Super League Event
Pipes in the Park Island Bay Festival
Wellington Wine, Food & Craft Beer Festival Wellington Lantern Festival Out in the Park
Pipes in the Park Holi Festival
NZ Festival

Summer Shakespeare Round the Bays Performance Arcade Guilty Feminist
Hurricanes Super Rugby season starts (postponed in March, restarted in June)
March 2020
NZ Fringe Festival Wellington International Pride Parade
Dragon Boat Festival Newtown Festival
Bowlzilla – Skateboard/Bowl titles Swimming NZ Juniors Festival All Stars NZ Secondary School (NZSS) Futsal Champs (cancelled)
Central Pulse season starts (postponed, restarted in June) Jim Beam Homegrown (cancelled) CubaDupa (held as virtual event)
April 2020
Armageddon (postponed to 1 August)
Anzac Day commemorations (events cancelled, Stand At Dawn promotion during COVID L4)
Wellington Saints NBL season (cancelled) Night Noodle Markets (cancelled)

National Age Group Swimming Championships (cancelled)
NZ Tertiary Futsal Champs (cancelled) Kids’ Night Walks at ZEALANDIA (postponed)
May 2020
NZ Art Show (cancelled)
Relay for Life (held as virtual event) NZ International Comedy Festival (cancelled)
NZ Music Month (held as virtual event) Better Home & Living Show (postponed to October)
Africa Day (postponed to 7 November) Food Show (postponed to 30 October
–1 November)
New Zealand Interprovincial Volleyball Champs (cancelled)
June 2020
Super Rugby Aotearoa Classical on Cuba
Doc Edge Festival (held as virtual event) Wellington Jazz Festival (postponed) Lōemis (cancelled)
Winter Pop-Up Market (cancelled) NZ Warriors v Queensland Cowboys (cancelled)

Kuputaka
Glossary

Annual Plan (AP). Our Annual Plan is our budget, showing the expected cost of running the city for the financial year, and how the costs will be funded. An Annual Plan is not prepared in years when a Long- term Plan is prepared (see Long-term Plan).
Baseline target. A baseline target is established when a performance measure is new, the results are inconclusive, or the methodology has changed. The first year/s data is used to collect and assess results to establish a “baseline” from which a target can then be set for future years.
Capital expenditure. Capital expenditure, also referred to as CAPEX, is the money that we spend to buy, maintain, or improve our fixed assets, such as buildings, vehicles, equipment, or land.
Cash and cash equivalents. This includes cash as well as deposits which mature in three months or less.
Council-Controlled Organisations (CCOs). These organisations were set up to independently manage Council facilities, or to deliver significant services and undertake developments on behalf of the Wellington community. Each year performance measures are agreed under a Statement of Intent. Results against these measures are reported in each CCO’s Annual Report.
Current asset. This is an asset that can be readily converted to cash or will be used to repay a liability within 12 months of balance date.
Current liability. This is a liability that is required to be discharged within 12 months of balance date.
Depreciation (amortisation). This is an expense charged each year to reflect the estimated cost of using our assets over their lives. Depreciation relates to physical assets such as buildings and amortisation relates to intangible assets such as software.
External funding for capital expenditure. This is funding recorded as revenue but used to fund capital expenditure projects.

Fair value. Fair value essentially reflects the market value of assets or liabilities.
Investment properties. These are properties primarily held by the Council to earn rental revenue.
Liquidity/funding risk. This is the risk that the Council will not have access to the required funds to meet its present obligations.
Long-term Plan (LTP). This 10-year plan, revised every three years, shows the expected cost of running the city for the following 10 years, and how the costs
will be funded. Also known as Our 10-Year Plan.
Net borrowings. These are total borrowings, less any funds held on deposit.
Net surplus/deficit. This is the difference between total revenue and total expenses. It includes both operating revenue and operating expenditure, as well as other non- funded items of revenue and expenditure such as capital funding, vested asset revenue and fair value movements.
Operational expenditure. This is expenditure that is not capital expenditure (see capital expenditure).
Percentage (%) variance. The difference between the actual performance measure result and the target result is reported as the result’s percentage above or below target. For example, the difference between an actual performance result of 20 percent and the target result of 40 percent is -50 percent. This is because the result is 50 percent less than the target. While the numerical difference between the two figures is 20 percentage points, we do not report percentage point results unless otherwise stated.
Prudential limits. These are limits applied to the level of borrowings to ensure we are managing the Council’s assets and liabilities prudently. These limits are outlined in the Investment and Liability Management Policy in the Long-term Plan.

Reported result icon. The icons provide a visual indication of the performance measure and outcome indicator results. For Key Performance Measures they show whether the reported result is in one of four categories:
•   Not met: greater than 10 percent below target; or
•   Within 10 percent: between zero percent and 10 percent above or below target; or
•   Exceeded: greater than 10 percent above target; or
•   NA – not applicable/appropriate to determine a performance outcome.
We use a range of +/- 10 percent from target as it allows for fluctuations in performance across the year (e.g. seasonal changes). This is consistent with the reporting of other performance information during the year e.g. in Quarterly Reports.
Outcome Indicators are shown as trends over time with an icon that provides an indication of the trend direction. Where outcomes display a positive trend these will be shown with an up arrow, a negative trend with a downward arrow and no trend as a dash.
Residents Monitoring Survey (RMS). This survey is undertaken annually by Council. The survey is conducted in two parts. This year, the survey was
sent out during the COVID-19 restriction to just over 3,000 residents and remained open until minimum quotas for age, gender and ward were met. The final sample size for 2020 was 696 for Part 1 and 627 for Part 2, post-weighting. The standard margin of error at 95 percent confidence level was 4 percent.

Ring-fenced funds. These are funds that can only be used for a specific purpose.
Total comprehensive revenue and expense. This is the net surplus/deficit adjusted for fair value
movements of some of our assets including property, plant and equipment, and financial instruments
such as cash flow hedges. These movements are non-cash in nature and reflect the changing fair value of assets owned by the Council.
Underlying funding surplus/deficit. The underlying surplus is the reported net surplus, less any government funding for capital projects, plus items not required to be funded by ratepayers this year and other adjustments that do not affect the rating requirements of Council.
Unfunded depreciation. This is the amount of depreciation not funded by rates. This relates mainly to roading assets funded by NZTA and wastewater treatment assets where the operator has responsibility for asset renewal.
Vested assets. These are assets created by others and passed into Council ownership (for example roads built by a developer as part of a subdivision).

Directory
The Customer Contact Centre and website are your first points of contact for all Council services, including building and resource consents, complaints and queries, liquor licensing, animal control, food safety, parks and recreation facilities, Council meetings
and consultation, cemeteries, landfills, transport issues, rubbish and recycling collection, parking, rates, events, archives and community services.
Council offices
Wellington City Council
113 The Terrace, Wellington
P0 Box 2199, Wellington 6140, New Zealand Customer Contact Centre: Phone: 04 499 4444 Website: wellington.govt.nz
Email: info@wcc.govt.nz
ISSN: 0114-8362 (Print) 2324-559X (Online)
Published by Wellington City Council,
113 The Terrace, Wellington, New Zealand.
Printed in-house on FSC accedited (Forest Stewardship Council) paper sourced from WMF (Well Managed Forests). It has an EMAS certification (Environmental Management and Audit Scheme), and is produced Elemental Chlorine Free.
The Annual Report 2019/20 was adopted by the Council on 25 November 2020 in compliance with the Local Government Act 2002.
Photo credits:
Photos by Neil Price and Justine Hall, Wellington City Council
Samara Collins by Johnny Henrikus p61 Otto the dog by Ingo Schommer p78 Hamish Avery photo supplied p93
Kororā (little blue penguin) photo supplied p104 Phoenix fan by Mark Tantrum p111
All supplied photos as credited.

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